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    Question

    Under the Straight-Line Method of depreciation,

    depreciation is:
    A Charged on reducing balance Correct Answer Incorrect Answer
    B Constant every year Correct Answer Incorrect Answer
    C Increasing every year Correct Answer Incorrect Answer
    D Charged on actual usage Correct Answer Incorrect Answer

    Solution

    In the Straight-Line Method (SLM), depreciation is calculated by dividing the depreciable amount (cost minus residual value) by the useful life. The amount remains constant each year.

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