Question

The Double Declining Balance Method applies depreciation:

Options

• At twice the rate of SLM on book value

• At half the rate of SLM on cost

• Based on total production

• Only at the end of the asset’s life

Answer 1

At twice the rate of SLM on book value

Explanation:

DDB is an accelerated method where depreciation is charged at twice the straight-line rate, resulting in faster expense recognition early on.