If a company owns a truck for five years, it will have higher depreciation expense every year it owns the truck if it uses the double declining balance method than if it uses the straight-line method.

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Quizplus · Accepted Answer

The double declining balance method results in higher depreciation expense in the initial years, but the expense decreases each year, whereas the straight-line method spreads the cost evenly over the asset's useful life, resulting in a constant annual expense.

If a Company Owns a Truck for Five Years, It