The declining-balance method of depreciation produces
A) a decreasing depreciation expense each period.
B) an increasing depreciation expense each period.
C) a declining percentage rate each period.
D) a constant amount of depreciation expense each period.

Question

Quizplus · Accepted Answer

The declining-balance method of depreciation results in a decreasing depreciation expense each period, as the depreciation is calculated based on a percentage of the remaining book value of the asset. As the book value decreases each period, so does the amount of depreciation expense.

The Declining-Balance Method of Depreciation Produces