Which one of the following depreciation methods will typically result in the smallest earnings per share during the early periods of an asset's life?
A)150% declining balance method.
B)Units of production method.
C)Double-declining-balance method.
D)Straight-line method.

Question

Quizplus · Accepted Answer

The double-declining-balance method results in higher depreciation expenses in the early years of an asset's life compared to the straight-line method. This higher expense will result in lower earnings, and thus lower earnings per share.

Which One of the Following Depreciation Methods Will Typically Result