Question

Which of the following depreciation methods always allocates a higher amount of depreciation in earlier years than in later​ years? A. the​ first-in, first-out method B. the​ straight-line method C. the​ double-declining-balance method D. the​ units-of-production method

Answer 1

Answer:

C.

Explanation:

The depreciation method that always allocates a higher amount of depreciation in earlier years than in later​ years is the double-declining-balance method. This method is a much more accelerated method when compared to the straight-line method, whereas this one starts depreciating much faster in the earlier years of the asset's life but begins to slow down in the later years. Due to this difference, many companies decide not to use it in their financial statements.