If the reducing balance method is used the allowable depreciation rate is generally:
A)two times the straight-line rate.
B)2.5 times the straight-line rate.
C)three times the straight-line rate.
D)1.5 times the straight-line rate.

Question

Quizplus · Accepted Answer

The reducing balance method allows for a higher depreciation rate in the earlier years of an asset's life, gradually decreasing over time. The allowable depreciation rate is typically 1.5 times the straight-line rate, but may vary depending on the specific asset and industry.

If the Reducing Balance Method Is Used the Allowable Depreciation