When comparing the straight-line and the reducing-balance methods of depreciation, in the later years of the asset's life the depreciation charge using the straight-line method will be:

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In the reducing-balance method, the depreciation charge decreases over the asset's life because it's calculated as a percentage of the asset's diminishing book value. In contrast, the straight-line method spreads the cost evenly over the asset's useful life, resulting in a greater depreciation charge in later years compared to the reducing-balance method.

When Comparing the Straight-Line and the Reducing-Balance Methods of Depreciation