Depreciation expense in the declining-balance method is calculated by the depreciation rate:
A)Times book value at beginning of year
B)Plus book value at end of year
C)Divided by book value at beginning of year
D)Times accumulated depreciation at year end
E)None of these

Question

Quizplus · Accepted Answer

Depreciation expense in the declining-balance method is calculated by multiplying the depreciation rate (which is a percentage) by the book value of the asset at the beginning of the year. This results in a larger depreciation expense in the earlier years of an asset's life, which gradually decreases over time.

Depreciation Expense in the Declining-Balance Method Is Calculated by the Depreciation