The declining balance method of amortization is appropriate for software or other assets where the value of the asset is derived mainly in the early years of the assets' life.

Question

Quizplus · Accepted Answer

The declining balance method of amortization is appropriate for assets where the value of the asset is derived mainly in the early years of the assets' life. This method allocates a higher amount of depreciation expense in the early years and gradually reduces it over time, which is suitable for software or other assets that become quickly outdated or lose their value rapidly.

The Declining Balance Method of Amortization Is Appropriate for Software