Which depreciation method allocates equal depreciation expense for each year of an asset’s estimated useful life?

Explanation

• Straight-Line Depreciation distributes cost evenly over useful life using formula: $text{Annual Depreciation} = frac{text{Cost} – text{Residual Value}}{text{Useful Life in Years}}$.
• It is the simplest and most widely used depreciation method for financial reporting.
• Reducing Balance (Declining Balance) methods accelerate depreciation expense into early asset years.