Question

Which method almost always produces the most depreciation in the first year?

A. Units-of-production
B. Straight-line
C. Double-declining-balance
D. All produce the same depreciation in the first year.

Answer 1

The Double-declining-balance method almost always produces the most depreciation in the first year.

Step-by-step explanation:

The method that almost always produces the most depreciation in the first year is Double-declining-balance. This depreciation method accelerates the recognition of depreciation expense, meaning more depreciation is allocated in the early years of an asset's life. It is calculated by taking two times the straight-line depreciation rate and applying it to the asset's beginning book value.