Which of the following does NOT differ among the different depreciation methods?

• A. The pattern in which depreciation expense is recognized
• B. The annual depreciation expense recorded each year
• C. The total amount of depreciation over the asset's useful life
• D. The book value of the asset at the end of each year

Answer: (C)

Verified step by step guidance

1. Understand the concept of depreciation: Depreciation is the allocation of the cost of a tangible asset over its useful life. Different methods of depreciation affect how the expense is recognized annually, but the total depreciation over the asset's useful life remains the same.
2. Review the different depreciation methods: Common methods include straight-line, declining balance, and units of production. Each method has a unique pattern for recognizing annual depreciation expense.
3. Analyze the total depreciation: Regardless of the method used, the total depreciation over the asset's useful life equals the asset's cost minus its salvage value. This is a fixed amount that does not change based on the method chosen.
4. Compare the book value of the asset: The book value of the asset at the end of each year will differ depending on the depreciation method used, as the annual expense varies.
5. Conclude that the total depreciation amount is consistent: While the pattern of expense recognition and annual depreciation amounts differ, the total depreciation over the asset's useful life remains constant across all methods.