Accelerated Methods of Depreciation Result in Greater Depreciation Allowances Than

question 34

Multiple Choice

Accelerated methods of depreciation result in greater depreciation allowances than straight-line depreciation in the early years of the depreciation schedule. Suppose a personal property is eligible for a three-year cost recovery period and can be depreciated using 200 percent declining balance depreciation. Calculate the accelerated depreciation rate in the first year.

• A) 14.28%
• B) 28.57%
• C) 33.33%
• D) 66.66%