In the first year of an asset's life, which of the following methods has the smallest depreciation?
A) Straight-line.
B) Declining balance.
C) Sum-of-the-years' digits.
D) Composite or group.

Question

Quizplus · Accepted Answer

Straight-line depreciation evenly spreads the depreciation expense over the lifespan of the asset, resulting in the smallest depreciation amount in the first year. Other methods front-load the depreciation expense, resulting in a larger expense in the first year.

In the First Year of an Asset's Life, Which of the Following