The correct answer is A. Straight line method.
The straight-line method is a depreciation method that assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year. This means that the depreciation expense is the same each year for the life of the asset.
The straight-line method is the simplest and most common depreciation method. It is easy to understand and apply, and it provides a consistent depreciation expense each year.
The straight-line method is not always the best depreciation method to use. For example, if an asset is expected to have a higher usage in the early years of its life, then a different depreciation method, such as the declining balance method, may be more appropriate.
The sinking fund method is a depreciation method that assumes that the
annual cost of depreciation is equal to the amount that would be deposited into a sinking fund each year to accumulate enough money to replace the asset at the end of its useful life.The sum-of-the-year-digits method is a depreciation method that assumes that the annual cost of depreciation is proportional to the number of years remaining in the asset’s useful life.
The declining balance method is
a depreciation method that assumes that the annual cost of depreciation is a fixed percentage of the book value of the asset at the beginning of the year. The percentage is usually greater than 100%, which means that the depreciation expense is greater in the early years of the asset’s life and less in the later years.