The declining-balance method of depreciation is appropriate for companies that expect their equipment or other assets to become obsolete rapidly.

Question

Quizplus · Accepted Answer

The declining-balance method of depreciation accelerates the depreciation expense in the early years of the asset's life, making it a suitable method for assets that become obsolete quickly. This method matches the higher early expense with the higher early benefit, allowing for a more accurate representation of the asset's value and use over time.

The Declining-Balance Method of Depreciation Is Appropriate for Companies That