Chapter 17, Problem 8CR

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8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

A method of accelerated depreciation that uses a multiple

To determine

**To fill:** The blank in the statement ‘A method of accelerated depreciation that uses a multiple (150% or 200%) of the straight-line rate is known as the _____ method.’

Explanation

Declining-balance method is a method of computing depreciation when a constant rate of depreciation is applied on declining book value each year.

To calculate the depreciation, this method uses a multiple of straight line rate.

The multiples that are used generally are 1.5 and 2.

When the multiple is 1...

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