One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:
A)takes book value below residual value.
B)does not consider the useful life of the asset in the calculation of depreciation.
C)cannot be used for tax purposes.
D)uses book value instead of depreciable cost in the calculation of depreciation.

Question

Quizplus · Accepted Answer

The double-declining-balance method ignores residual value and calculates the period's depreciation at twice the straight-line rate applied to the declining book value of the asset.

One Difference Between the Double-Declining-Balance Method and the Straight-Line Method