question_answer

A piece of equipment has been purchased by the city for Rs. 10,000 with an anticipated salvage at Rs. 500 after 8 years. Which of the depreciation models will yield the greatest reduction in the book value of the equipment?

A) Straight line depreciation

B) Sum-of-years digits depreciation

C) Declining balance depreciation

D) Declining balance depreciation is switched to straight line.