Which depreciation method is best suited for assets that lose value quickly?

Which depreciation method is best suited for assets that lose value quickly?

Step 1: Understand that depreciation is how we account for the loss of value of an asset over time.
Step 2: Recognize that some assets, like cars or technology, lose value faster than others.
Step 3: Learn about different depreciation methods, such as straight-line and declining balance.
Step 4: Identify that the declining balance method allows for higher depreciation in the early years.
Step 5: Conclude that the declining balance method is best for assets that lose value quickly because it reflects their rapid decrease in worth.

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