The Ancira Co.acquired a machine on May 1, 2010, at a cost of $60, 000.The machine is expected to have a ten-year life and a residual value of $5, 000.The estimated lifetime output from the machine is expected to be 55, 000 units.Under which of the following depreciation methods would the depreciation charge be the greatest in 2010 if 9, 100 units were produced during the year?
A)activity (units-of-output)method
B)straight-line method
C)sum-of-the-years'-digits method
D)double-declining-balance method

Question

Quizplus · Accepted Answer

The double-declining-balance method results in higher depreciation expenses in the earlier years of an asset's life compared to other methods.