Depreciation expense computed under double-declining-balance will decrease each year because the
A)book value used in the computation each year increases.
B)book value used in the computation each year decreases.
C)rate used in the computation each year increases.
D)rate used in the computation each year decreases.
E)All the above are correct.

Question

Quizplus · Accepted Answer

Under double-declining-balance method, the rate used to calculate depreciation is double the straight-line method rate. However, the book value used in the calculation decreases each year. This results in a decreasing depreciation expense each year.

Depreciation Expense Computed Under Double-Declining-Balance Will Decrease Each Year Because