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Section B Descriptive and Analytical Questions 6. Presented below is the depreciation charged on an equipment applying three different methods. Year 2017 2018 2019 2020
Section B Descriptive and Analytical Questions 6. Presented below is the depreciation charged on an equipment applying three different methods. Year 2017 2018 2019 2020 2021 Straight- Line $ 2,400 2,400 2,400 2,400 2,400 $12,000 Units-of- Activity $ 1,800 3,600 2,400 3,000 1.200 $12,000 Declining- Balance $ 5,200 3,120 1,872 1,123 685 $12,000 Questions: a. Out of these three methods, which method of depreciation you would prefer to apply for the equipment? (Marks: 2) Your answer: b. Give any ONE reason as to why you prefer the particular method. (Marks: 2) Your
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