Depreciation computed under double-diminishing-balance will decrease each year because:

Question

Quizplus · Accepted Answer

Under double-diminishing-balance depreciation, the book value used in the computation each year decreases, as a fixed percentage (double the straight-line rate) is taken out of the remaining book value each year. This means that the depreciation expense charged to the asset decreases each year, resulting in a decreasing total depreciation expense over the asset's life.

Depreciation Computed Under Double-Diminishing-Balance Will Decrease Each Year Because