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In selecting a depreciation method, a company should choose the method thatSelect answer from the options belowhas been used most often in the past by the company.best measures the property, plant, & equipment asset's contribution to revenue over its useful life.best measures the property, plant, & equipment asset's market value over its useful life.is easiest to apply.

Question

In selecting a depreciation method, a company should choose the method thatSelect answer from the options belowhas been used most often in the past by the company.best measures the property, plant, & equipment asset's contribution to revenue over its useful life.best measures the property, plant, & equipment asset's market value over its useful life.is easiest to apply.

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Solution

The company should choose the depreciation method that best measures the property, plant, & equipment asset's contribution to revenue over its useful life. This is because depreciation is a way of allocating the cost of an asset over its useful life, and it should reflect how the asset is used to generate revenue. Other factors, such as ease of application or past usage, are secondary considerations.

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