The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is
A) units-of-production
B) declining-balance
C) straight-line
D) time-valuation

Question

Quizplus · Accepted Answer

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the declining-balance method, where depreciation is calculated as a percentage of the book value of the asset each year. This results in higher depreciation charges in the early years of the asset's life and lower charges in later years. This method is appropriate for assets that are more productive in the early years of their lives, such as equipment and machinery.

The Method of Determining Depreciation That Yields Successive Reductions in the Periodic