Which of the Following Is True of the Double-Declining-Balance Method

question 11

Multiple Choice

Which of the following is true of the double-declining-balance method?

• A) The method takes larger amounts of depreciation during the later years of an asset's life.
• B) The method calculates depreciation at double the straight-line rate of depreciation.
• C) The method considers the trade-in value of an asset at the beginning of the depreciation schedule.
• D) The method adds the salvage value of an asset to its accumulated depreciation to compute its book value.