Question

I Need Help ASAP Please.

Q: Under what circumstances does declining balance provide the most satisfactory allocation

of cost when depreciating items of property, plant, and equipment?

Note:

Provide your answer using complete statements and using proper

grammar, punctuation, etc.

Provide a proper reference from FASB Codification in proper

form: xxx-xx-xx-xx or xxx-xx-xx

Answer 1

Answer:

Depreciation is a method of allocating depreciable amount over the useful life of an asset.

The method of depreciation employed must reflect the pattern of economic benefits of the asset consumed by an enterprise. The enterprise can opt reducing balance method when the pattern of the economic benefit consumed by the enterprise is gradually decreasing from period to period.