Use of Straight-Line Depreciation in Comparison to the Diminishing-Balance Method

Multiple Choice

Use of straight-line depreciation in comparison to the diminishing-balance method results in
1) a greater amount of depreciation in the earlier years of an asset's useful life.
2) a greater amount of depreciation in the later years of an asset's useful life.
3) an equal amount of depreciation over an asset's total useful life.

A) 1.
B) 2.
C) 3.
D) both 2 and 3.