The ____ depreciation method calculates interest as highest in the first period and decreases in amount each period thereafter.

Question

Quizplus · Accepted Answer

The double-declining balance method calculates depreciation as a percentage of the book value of the asset, which is the asset's cost minus the accumulated depreciation. The percentage used is twice the straight-line depreciation rate. This means that the depreciation expense is highest in the first period and decreases in amount each period thereafter.

The ____ Depreciation Method Calculates Interest as Highest in the First