Refer to Fabian Woodworks. Based on the information presented above, what method of depreciation will maximize depreciation expense in 2012?
A)straight-line
B)double-declining-balance
C)units-of-production
D)All methods produce the same expense in 2012.

Question

Quizplus · Accepted Answer

Double-declining-balance method accelerates the depreciation expense in the beginning years of an asset's life, producing a higher depreciation expense in 2012 than the straight-line method or units-of-production method. This method suits Fabian Woodworks as they aim to maximize depreciation expense in 2012.