A company purchased a computer on 1 July 2016.The computer has an estimated useful life of 5 years and will have no residual value.It was purchased for $10 000.It is estimated that the computer can be used for 5 000 hours.The computer was used for 450 hours during 2016.If the goal is to record higher depreciation expense in the earlier years,which method should be used?

Question

Quizplus · Accepted Answer

The reducing balance method results in higher depreciation expenses in the earlier years compared to other methods.

A Company Purchased a Computer on 1 July 2016