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The following table shows the amount of revenue generated by three different companies over a three year period of time. Company Year 1 Year 2

The following table shows the amount of revenue generated by three different companies over a three year period of time.

Company Year 1 Year 2 Year 3
Brown Company 30,000 20,000 10,000
Jones Company 20,000 20,000 20,000
Smith Company 35,000 10,000 15,000

Based on this information alone Brown Company should depreciate its long-term assets using

Multiple Choice

  • straight-line depreciation.

  • double-declining-balance depreciation.

  • units-of-production depreciation.

  • first-in-first-out depreciation.

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