Use of the double-declining balance method ________.
A) ignores the scrap value of the asset for all purposes
B) results in twice the depreciation expense that would be recognized by the straight-line method each period
C) means that the amount of depreciation expense decreases year after year
D) All of the above are true.

Question

Quizplus · Accepted Answer

The double-declining balance method results in a decreasing amount of depreciation expense each year as it applies a constant rate to the declining book value of the asset. It does not ignore the scrap value entirely, as the asset cannot be depreciated below its salvage value. It does not result in twice the depreciation expense each period compared to the straight-line method, but rather starts with a higher amount that decreases over time.

Use of the Double-Declining Balance Method ________