If an asset produces more revenue in its early years, the depreciation method best suited for this asset would be the:

Question

Quizplus · Accepted Answer

The double-declining balance method provides a larger depreciation expense in the early years of an asset's life, reflecting the higher revenue it produces during that time. As the asset ages and produces less revenue, the depreciation expense decreases. This method is commonly used for assets that rapidly lose their value in the early years of use, such as technology or equipment.

If an Asset Produces More Revenue in Its Early Years