Machinery is purchased on May 15, 2009 for $50,000 with a $5,000 salvage value and a five year life. The half year convention is followed. What method of depreciation will give the highest amount of depreciation expense in year 2?
A) Straight line
B) Double declining balance
C) 150% declining balance
D) Amount cannot be determined

Question

Quizplus · Accepted Answer

Double declining balance method results in higher depreciation expense in the early years of the asset's life. In year 2, this method will result in the highest amount of depreciation expense compared to the other methods listed.

Machinery Is Purchased on May 15, 2009 for $50,000 with a $5,000