In first year the highest expense of depreciation
offers by declining-balance method and also known as method of accumulated-depreciation.
This is due to the deprecation calculation on the book-value. Although the rate
of deprecation doesn’t change, but book value of asset steadily decline due to change
the expense of depreciation from precedent year to coming year. So, when useful
life of asset is long than high deprecation is charged and as the asset’s
useful life reduce the deprecation also low. It demonstrates that superior advantages
of asset result in higher expense of depreciation(Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, 2012).
Paul D. Kimmel, Jerry J. Weygandt,
Donald E. Kieso, (2012). Accounting: Tools for Business Decision Making. Published
by: Wiley; 5