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    Depreciation Methods

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    Is it appropriate to calculate depreciation using two different methods? Why or why not?

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    Solution Preview

    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. ...

    Solution Summary

    The problem can be read two ways, but both are explained in the solution together with examples for each response.