Ganley Rental Cars recently acquired several new cars for their fleet. The cars have an estimated...
Ganley Rental Cars recently acquired several new cars for their fleet. The cars have an estimated life of 4 years and should be driven 80,000 miles. What is the most appropriate method of depreciation to properly match revenues and expenses?
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Expense deferral |
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Revenue recognition |
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Units-of-production |
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Double-declining balance |
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Straight line |
Homework Answers
Here the most appropriate method of calculating depriciation for Gebley Rental cars is Units-of-production method .
By this method revenue and expenses properly matched because its based on how much miles drived the car in a particular year . It gaves actual depreciation for a car .
Ans) UNITS-OF-PRODUCTION
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