If the 150% declining balance method is being used and an asset has a useful life of 20 years what is the depreciation rate?
A) 7.5%.
B) 10%.
C) 15%.
D) Some other amount.

Question

Quizplus · Accepted Answer

The 150% declining balance method is a type of accelerated depreciation that results in a higher depreciation expense in the early years of an asset's life. The depreciation rate for this method is calculated by multiplying the straight-line depreciation rate by 1.5. In this case, the straight-line depreciation rate would be 5% (100% / 20 years). Therefore, the depreciation rate for the 150% declining balance method would be 7.5% (5% x 1.5).

If the 150% Declining Balance Method Is Being Used and an Asset