Is it appropriate to calculate depreciation using two different methods?
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Is it appropriate to calculate depreciation using two different methods? Which depreciation method gives you the highest depreciation expense in the first year? Why?
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Solution Summary
This solution discusses whether it is appropriate to calculate depreciation using two different methods and which depreciation method gives you the highest depreciation expense in the first year in 200 words.
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Theoretically, the selection of a depreciation method should be based on the expectations regarding the pattern of decline in the service potential of the asset under consideration. Because both the nature and the characteristics of various assets may vary significantly, alternative depreciation patterns may be justified. ...
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