Asked by elizabeth mccloskey on May 02, 2024

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Which depreciation method uses twice the straight-line rate?

A) Units-of-production
B) Modified accelerated cost recovery
C) Straight-line
D) Double declining-balance

Straight-Line Rate

A method of calculating the depreciation of an asset, which allocates an equal depreciation expense each year over the asset's useful life.

Double Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, allowing for faster asset expense recognition.

Modified Accelerated Cost Recovery

A tax depreciation system in the U.S. that allows for the accelerated depreciation of property under certain conditions.

  • Understand the principle and financial procedures of depreciation, encompassing diverse methods of depreciation and their effects on financial reports.
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MM
Marilyn MejiaMay 07, 2024
Final Answer :
D
Explanation :
The double declining-balance method of depreciation uses twice the straight-line rate to accelerate the depreciation of assets. This method results in higher depreciation expenses in the early years of an asset's life and lower expenses as the asset ages.