What are the benefits of the straight line method over the double decline balance method, and viceversa?

Question

Depreciation problem

Answer 1

Straight line method is the easiest to use. Under this depreciation method, the depreciation for each full year is the same amount.

As one of several "accelerated depreciation" methods, DDB results in relatively large amounts of depreciation in early years of asset life and smaller amounts in later years. This method can be justified if the quality of service produced by an asset declines over time, or if repair and maintenance costs will rise over time to offset the declining depreciation amount.

Answer 2

Great question:

Here is a better explination that I can give.

http://beginnersinvest.about.com/cs/investinglessons/l/bldbldeclinebal.htm