The correct answer is: A. Double percentage method.
The declining balance method is a depreciation method in which the depreciation expense is calculated as a percentage of the remaining book value of the asset. The percentage is applied to the book value each year, and the book value is reduced by the depreciation expense. This method results in a higher depreciation expense in the early years of the asset’s life and a lower depreciation expense in the later years.
The declining balance method is also known as the double percentage method because the depreciation percentage is applied to the book value each year. The depreciation percentage is typically twice the straight-line depreciation rate.
The declining balance method is a more aggressive depreciation method than the straight-line method. This is because the depreciation expense is higher in the early years of the asset’s life. This can result in a lower taxable income in the early years and a higher taxable income in the later years.
The declining balance method is also a more complex depreciation method than the straight-line method. This is because the depreciation percentage is applied to the book value each year. This can make it more difficult to calculate the depreciation expense.
The declining balance method is not as commonly used as the straight-line method. This is because the declining balance method is a more aggressive depreciation method and a more complex depreciation method.
The other options are incorrect because they are not depreciation methods.