Machinery is purchased on May 15,2018 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?

Question

Quizplus · Accepted Answer

The double-declining balance method will give the highest amount of depreciation expense in Year 2 because it applies a higher depreciation rate (40% for a 5-year life asset) compared to the straight-line and 150% declining balance methods, especially in the early years of the asset's life.

Machinery Is Purchased on May 15,2018 for $50,000 with a $5,000