What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry? Options: A . &nbspUnstable economy B . &nbspRate of interest cannot be exactly determined C . &nbspThe initial deprecation is high D . &nbspThe initial depreciation is low

What is the main reason why the sinking fund method of computing depreciation is

Question

What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Options:

A . Unstable economy

B . Rate of interest cannot be exactly determined

C . The initial deprecation is high

D . The initial depreciation is low

Answer: Option D

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