The correct option is C. Double Declining Balance Depreciation. Explanation of the Correct Answer Double Declining Balance (DDB) Depreciation 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 life and a smaller portion in the later years. How Double Declining Balance Works:

1. Determine the Straight-Line Depreciation Rate:
2. First, you calculate the straight-line depreciation rate, which is done by taking 100% and dividing it by the useful life of the asset. For example, if an asset has a useful life of 5 years, the straight-line rate would be 20% (100% / 5 years).
3. Double the Straight-Line Rate:
4. Next, you double this rate. Using the previous example, the double declining rate would be 40% (20% x 2).
5. Apply the Rate to the Book Value:
6. The DDB method applies this doubled rate to the book value of the asset at the beginning of each year. The book value is the cost of the asset minus any accumulated depreciation.
7. Calculate Depreciation Expense:
8. For the first year, if the asset cost $10,000, the depreciation expense would be $4,000 (40% of $10,000). In the second year, the book value would be $6,000 ($10,000 - $4,000), and the depreciation expense would be $2,400 (40% of $6,000), and so on.

This method results in higher depreciation expenses in the earlier years because the asset's book value is higher at the start, leading to a larger depreciation expense when applying the double rate. Why the Other Options Are Incorrect or Weaker A. Straight-Line Depreciation: - This method spreads the cost of the asset evenly over its useful life. Each year, the same amount of depreciation expense is recorded, which means there is no higher expense in the earlier years compared to later years. Therefore, it does not meet the criteria of the question. B. Units of Production Depreciation: - 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. If the asset is used more in the earlier years, it could result in higher expenses, but this is not guaranteed and is not a systematic approach like DDB. Thus, it does not consistently result in higher expenses in the earlier years. D. Sum-of-the-Years'-Digits Depreciation: - This is another accelerated method, but it does not accelerate depreciation as aggressively as DDB. It 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 high as DDB. Therefore, while it does result in higher expenses in the earlier years, it is not as pronounced as in the DDB method. Summary of Key Points

• Double Declining Balance is an accelerated depreciation method that results in higher expenses in the early years of an asset's life.
• It calculates depreciation based on a doubled straight-line rate applied to the book value of the asset.
• Other methods like Straight-Line and Units of Production do not consistently result in higher early expenses, while Sum-of-the-Years'-Digits is less aggressive than DDB.
• Understanding the mechanics of each method is crucial for accurate financial reporting and analysis.

This thorough understanding of depreciation methods is essential for financial accounting, as it impacts financial statements and tax calculations.