At the end of the first year of an asset's life,the declining-balance depreciation:
A)causes an asset to be carried at a higher book value than that computed using the straight-line method.
B)causes an asset to be carried at a lower book value than that computed using the straight-line method.
C)causes an asset to be carried at the same book value as that computed using the straight-line method.
D)cannot be used if the resulting book value will be significantly different from that which would result from using the straight-line method.

Question

Quizplus · Accepted Answer

The straight-line depreciation method allocates the depreciable cost of an asset in equal periodic amounts over its useful life.The declining-balance depreciation method is used to report more depreciation expense in the early years of an asset's life when the asset is more efficient and less in later years as the asset becomes less efficient.As a result,at the end of the first year of an asset's life,the declining-balance depreciation method causes an asset to be carried at a lower book value than that computed using the straight-line method.

At the End of the First Year of an Asset's