The ________ method of depreciation assumes that the value of an asset depreciates more in the first year than in the second year.

Question

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The declining-balance method of depreciation assumes that an asset loses more value in the first year of use than in the subsequent years. This method applies a fixed percentage rate to the remaining balance of an asset each year. As a result, the depreciation expense decreases every year, so the asset's book value declines more rapidly in the early years of the asset's useful life.

The ________ Method of Depreciation Assumes That the Value of an Asset