What happens to the depreciation expense under the Straight-Line method?

Under the Straight-Line method of depreciation, the depreciation expense is calculated by taking the cost of the asset, subtracting its estimated salvage value, and then dividing that figure by the useful life of the asset. This approach results in a consistent and equal expense recorded each accounting period over the asset's useful life.

This constancy makes it easy for businesses to predict and manage their expenses, as the same amount will be charged annually until the asset is fully depreciated. Unlike methods such as declining balance or units of production, where expenses can fluctuate based on usage or time, the Straight-Line method provides stability in financial reporting.

Thus, the correct answer reflects this hallmark characteristic of the Straight-Line method, distinguishing it from other depreciation approaches that might introduce variability based on asset utilization or time.