Which of the allowable methods allows the most accelerated depreciation?
A) 150 percent declining balance
B) 200 percent declining balance
C) Straight line
D) Sum of the years digits
E) None of these allow accelerated depreciation

Question

Quizplus · Accepted Answer

The 200 percent declining balance method allows for the most accelerated depreciation out of the methods listed. This method doubles the depreciation rate of the asset's straight line depreciation rate for the first year, and then applies the same rate to the remaining book value for each subsequent year. This allows for a larger deduction in the early years of the asset's useful life.

Which of the Allowable Methods Allows the Most Accelerated Depreciation