The correct answer is: A. Higher.
The sinking fund method of depreciation is a method of accounting for the depreciation of an asset over its useful life. The amount of depreciation expense recognized each period is based on the estimated residual value of the asset at the end of its useful life, the estimated useful life of the asset, and the interest rate used to calculate the sinking fund.
The sinking fund method of depreciation results in a higher amount of depreciation expense in the early years of the asset's life and a lower amount of depreciation expense in the later years of the asset's life. This is because the estimated residual value of the asset is higher in the early years of the asset's life and lower in the later years of the asset's life.
The annuity method of depreciation is a method of accounting for the depreciation of an asset over its useful life. The amount of depreciation expense recognized each period is based on the estimated cost of the asset, the estimated useful life of the asset, and the interest rate used to calculate the annuity.
The annuity method of depreciation results in a lower amount of depreciation expense in the early years of the asset's life and a higher amount of depreciation expense in the later years of the asset's life. This is because the estimated cost of the asset is higher in the early years of the asset's life and lower in the later years of the asset's life.
Therefore, the amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is higher.