The carrying amount of an asset when using double-declining-balance depreciation is always greater than the carrying amount from using straight-line depreciation, except at the beginning and the end of the asset's useful life, when it is the same.

Question

Quizplus · Accepted Answer

The carrying amount of an asset when using double-declining-balance depreciation is initially higher than the carrying amount from using straight-line depreciation. However, as the asset ages, the difference narrows, and eventually the carrying amount under both methods will be the same at the end of the asset's useful life. Therefore, the statement is false.

The Carrying Amount of an Asset When Using Double-Declining-Balance Depreciation