The depreciation method that computes depreciation at an accelerated rate with depreciation being highest in the first period and decreasing in successive periods is ____.

Question

Quizplus · Accepted Answer

The method that computes depreciation at an accelerated rate with depreciation being highest in the first period and decreasing in successive periods is the double-declining balance method. This method is commonly used for tax purposes and is appropriate when assets are expected to generate higher revenues in their early years of use. Therefore, the best choice is D, the double-declining balance method.

The Depreciation Method That Computes Depreciation at an Accelerated Rate