Depreciation expense is higher in earlier years and income is lower in the later years when using straight-line versus accelerated methods.

Question

Quizplus · Accepted Answer

Depreciation expense is higher in the earlier years and lower in the later years when using accelerated methods such as double declining balance or sum-of-years digits. Straight-line method results in the same amount of depreciation expense each year. Therefore, income is not necessarily lower in later years when using straight-line method.

Depreciation Expense Is Higher in Earlier Years and Income Is