Question

If a company uses straight-line depreciation, the average investment is calculated as: (Check all that apply.) Multiple select question. initial investment - salvage value)/2. (beginning book value - salvage value)/2. sum of individual years' average book values/number of years of planned investment (beginning book value salvage value)/2. (initial investment salvage value)/2.

Answer 1

When using straight-line depreciation, a company can find it's average investment as:

• (beginning book value + salvage value)/2
• sum of individual years' average book values/number of years of planned investment.

How can the average investment be found?

You can use the formula:
= (Beginning book value + Salvage value) / 2

It shows the two values that allow you to find the average investment because they show the beginning and ending change in the investment value.

You can alternatively take an average of the book value of every year and then add that up and divide the sum by the number of years.

This shows the average of the average book values which is the average investment.

Find out more on average investment at https://brainly.com/question/27256425.

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