Which depreciation method is being used if an organization charges $43,000 per year on a piece of equipment that cost $15,000 and has a useful life of 5 years?

The depreciation method in question is straight-line depreciation because it involves spreading the cost of an asset evenly over its useful life. In this scenario, the equipment has a total cost of $15,000 and a stated useful life of 5 years. Using straight-line depreciation, the annual depreciation expense is calculated by taking the total cost and dividing it by the useful life of the asset.

In this case, the annual depreciation would be $15,000 divided by 5 years, which equals $3,000 per year. However, since the question states that the organization charges $43,000 per year for depreciation, it suggests there could be an error or misunderstanding, as that figure does not align with the straight-line method applied here.

The straight-line method is straightforward and easy to comprehend, making it the most commonly used method for purposes like financial reporting and tax calculations. It's important to ensure accurate computation according to this method to maintain clear financial records. Other depreciation methods, such as accelerated or declining balance, typically result in higher depreciation in initial periods, while units of production varies based on usage, neither of which applies to the scenario as described.