Question

requirement 2. which method tracks the wear and tear on the equipment most closely? the method tracks wear and tear most closely

Explanation:

The units - of - production method calculates depreciation based on the actual usage (wear and tear) of the equipment. It links the depreciation expense to the output or activity level of the asset. For example, if a machine is used more in a particular period (more wear and tear), a higher depreciation expense is recognized in that period under this method. Other methods like straight - line (based on time) or double - declining balance (accelerated based on time) do not directly tie to the physical wear and tear as closely as the units - of - production method.

Answer:

units - of - production