Question

Name the method that assumes that an asset should be depreciated more in the earlier years and less in later years of use. ​

Answer 1

Answer:

Double-declining balance is a type of accelerated depreciation method. This method records higher amounts of depreciation during the early years of an asset's life and lower amounts during the asset's later years. Thus, in the early years, revenues and assets will be reduced more due to the higher depreciation expense.

Answer 2

ANSWER :

The name of the method that assumes that an asset should be depreciated more in the earlier years and less in later years of use is Double Declining Balance Method.

❖ The formula for charging depreciation under Double Declining Balance Method is :-

$\bigstar \: \: \large{ \sf{Periodic \: \: Depreciation \: \: Expense = Beginning \: \: Book}} \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \large{ \sf{Value \times Rate \: \: of \: \: Depreciation}}$

• ➪ Double Declining Balance Method is an accelerated depreciation method which counts as an expense more rapidly.

• ➪ Under Double Declining Balance Method, the asset value is depreciated at twice the rate it is done in the Straight Line Method.

• ➪ To calculate the depreciation under Double Declining Balance Method, the Book Value at the beginning of each period is multiplied by a fixed Depreciation Rate which is 200% of the Straight Line Method's depreciation rate, or a factor of 2.