When an asset is purchased during the year, it is not necessary to record depreciation expense in the first year under the declining-balance depreciation method.

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Under the declining-balance depreciation method, depreciation expense is calculated as a percentage of the book value of the asset, which means that it will continue to be recorded every year until the asset is fully depreciated, regardless of when it was purchased during the year.

When an Asset Is Purchased During the Year, It Is