One difference between the double-declining-balance method and the straight-line method is that the double-declining-balance method:
A)takes book value below residual value.
B)does not consider the useful life of the asset in the calculation of depreciation.
C)cannot be used for tax purposes.
D)uses book value instead of depreciable cost in the calculation of depreciation.

Question

Quizplus · Accepted Answer

The double-declining-balance method utilizes the book value of the asset in the calculation of depreciation, whereas the straight-line method uses the depreciable cost.

One Difference Between the Double-Declining-Balance Method and the Straight-Line Method