The correct option is B. Double Declining Balance Method. Explanation of the Correct Answer The Double Declining Balance (DDB) method is an accelerated depreciation method. This means that it allocates a larger portion of the asset's cost as an expense in the earlier years of the asset's useful life and a smaller portion in the later years. How the Double Declining Balance Method Works:

1. Determine the Asset's Useful Life: First, you need to know how long the asset is expected to be useful. For example, let's say an asset has a useful life of 5 years.
2. Calculate the Straight-Line Depreciation Rate: The straight-line rate is calculated as: [ \text{Straight-Line Rate} = \frac{1}{\text{Useful Life}} ] For a 5-year asset, the straight-line rate would be: [ \text{Straight-Line Rate} = \frac{1}{5} = 0.20 \text{ or } 20\% ]
3. Double the Straight-Line Rate: Since we are using the double declining method, we double this rate: [ \text{DDB Rate} = 2 \times 0.20 = 0.40 \text{ or } 40\% ]
4. Apply the DDB Rate to the Book Value: The depreciation expense for the first year is calculated by applying the DDB rate to the asset's initial cost. For example, if the asset cost $10,000: [ \text{Year 1 Depreciation} = 10,000 \times 0.40 = 4,000 ] The book value at the end of Year 1 would then be: [ \text{Book Value} = 10,000 - 4,000 = 6,000 ]
5. Continue for Subsequent Years: In Year 2, you would apply the DDB rate to the new book value: [ \text{Year 2 Depreciation} = 6,000 \times 0.40 = 2,400 ] This process continues until the asset is fully depreciated.

As you can see, the depreciation expense is higher in the early years and decreases over time, which is characteristic of accelerated depreciation methods like the DDB method. Why the Other Options Are Incorrect or Weaker A. Straight-Line Method: - The straight-line method allocates an equal amount of depreciation expense each year over the asset's useful life. This means that the expense remains constant, resulting in no higher expense in the early years compared to the later years. Therefore, it does not meet the criteria of the question. C. Units of Production Method: - This method bases depreciation on the actual usage of the asset rather than time. The expense can vary significantly depending on how much the asset is used in a given period. It does not inherently result in higher expenses in the early years unless the asset is used more heavily at the beginning of its life. Thus, it does not consistently produce higher early-year expenses. D. Sum-of-the-Years'-Digits Method: - This is another accelerated depreciation method, but it does not produce as high an expense in the early years as the DDB method. The sum-of-the-years'-digits method calculates depreciation based on a fraction of the remaining life of the asset, which results in higher expenses in the earlier years compared to straight-line but not as aggressively as the DDB method. Summary of Key Points

• The Double Declining Balance method results in higher depreciation expenses in the early years due to its accelerated nature.
• It applies a constant percentage (double the straight-line rate) to the declining book value of the asset.
• Other methods like Straight-Line and Units of Production do not produce higher early-year expenses consistently.
• The Sum-of-the-Years'-Digits method is also accelerated but not as aggressive as the DDB method.

This understanding of depreciation methods is crucial for financial accounting, as it affects financial statements and tax calculations.