A company reported the following depreciation expenses for the first three years of an asset's life: $10,000, $8,000, $6,400.Which of the following depreciation methods are they most likely using?

Question

Quizplus · Accepted Answer

The decreasing amount of depreciation expenses each year suggests that the company is using an accelerated depreciation method, such as the double-declining balance or MACRS (Modified Accelerated Cost Recovery System) method commonly used for tax purposes.

A Company Reported the Following Depreciation Expenses for the First