CHARACTERISTICS OF DEPRECIATION METHODS. Match one or more of the depreciation methods listed below with each characteristic in the list that follows. List the numbers 1 through 8 and, opposite each number, the letters of the depreciation methods possessing the corresponding characteristic.

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DEPRECIATION METHOD a) Straight-line depreciation b) Sum-of-the-years'-digits depreciation c) Declining balance depreciation d) Usage depreciation when actual usage increases over the life of the asset CHARACTERISTIC 1. Allocates the same amount of cost to each period of a depreciable asset's life 2. Results in depreciation expense that decreases over the life of the asset 3. Results in depreciation expense that increases over the life of the asset 4. Consistent with the service potential concept 5. Calculated by multiplying a changing rate or ratio by depreciable cost 6. Calculated by multiplying a constant rate or ratio by depreciable cost 7. Calculated by applying a constant rate or ratio to the asset's book value at the beginning of the period 8. Results in lowest income taxes in early years of the asset's life