A company uses plant assets that are subject to rapid decreases in value due to obsolescence and physical deterioration.Which of the following depreciation methods is most appropriate to measure the decline in the usefulness of this company's assets?
A)Double-declining-balance
B)Revenue expenditure method
C)Straight-line
D)Units-of-production

Question

Quizplus · Accepted Answer

Double-declining-balance is an accelerated depreciation method that is appropriate for assets that are subject to rapid decrease in value due to obsolescence and physical deterioration. This method charges more depreciation in the early years of the asset's life, when it is most productive, and less in later years when it becomes less productive. This allows the company to account for the asset's declining usefulness and value over time.

A Company Uses Plant Assets That Are Subject to Rapid