Depreciation Methods
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Is it appropriate to calculate depreciation using two different methods? Why or why not?
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The problem can be read two ways, but both are explained in the solution together with examples for each response.
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I can read the question two ways and will answer both with a 'yes'.
A company may have a variety of assets and each asset could use a different method of depreciation. There are reasons why this treatment might be advantageous. For example, if your company purchased a basket of similar assets in 2007, it could be that you would use a straight line method for some as opposed to an accelerated method for others. ...
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