Final answer:
The most conservative depreciation approach in the year a depreciable asset is acquired is C. Declining balance depreciation with a short useful life, as it expedites the most depreciation in the earliest years.
Step-by-step explanation:
The student asked which combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired. The most conservative approach for financial reporting would usually be the one that expenses the most depreciation in the earliest years. Comparing the options provided:
- A. Straight-line depreciation with a short useful life expensed evenly over the life of the asset.
- B. Declining balance depreciation with a long useful life expensed more in the early years, but less aggressive due to the longer life span.
- C. Declining balance depreciation with a short useful life results in the highest depreciation expense in the first year, making it the most conservative option.
Therefore, the correct answer to the student's question is C. Declining balance depreciation with a short useful life.