Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year?
A) Straight-line.
B) Units-of-production.
C) Double-declining balance.
D) Sum-of-the-year's digits.

Question

Quizplus · Accepted Answer

The double-declining balance method results in the largest amount of depreciation in the first year because it depreciates the asset at twice the rate of the straight-line method. This is because it calculates depreciation based on a declining book value, meaning that more depreciation is taken in the earlier years of the asset's life.

Assuming an Asset Is Used Evenly Over a Four-Year Service