Question
1. Record the Depreciation Expense for the period under the double-declining-balance method. 2. What general conclusion can you draw regarding the comparison of the three
1. Record the Depreciation Expense for the period under the double-declining-balance method.
2. What general conclusion can you draw regarding the comparison of the three methods?
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The Double-Declining-Balance (accelerated) method records an increasing amount of depreciation expense in each year over the equipment's useful life.
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The Straight-line method implies that an asset is used evenly over its useful life, therefore the expense is constant each year.
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The Activity-Based method reflects depreciation expense based on estimated units produced, and therefore is not likely to reflect the cost of using the equipment each year.
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