True Stories Company sold the rights to a documentary film. They are expecting significant revenue in Year 1. The revenue stream is expected to decrease steadily until it reaches zero in Year 5. Based on this Which depreciation method should be used to most closely match the expense to the revenue stream the asset produces

Respuesta :

The best depreciation method for this company is the double-declining-balance

In economics, depreciation occurs when a product gradually loses its value. The most common causes of depreciation are:

  • The product becomes obsolete
  • Wear and tear of the product
  • The product's popularity decreases

Moreover, there are different methods to understand this decline in value that include:

  • Double-declining balance
  • Straight line
  • Units-of-production

The double-declining balance method implies depreciation is not constant over the years but as years pass the depreciation increases. This method applies to True Stories Company because it is expected the documentary film becomes less and less popular every year, and therefore depreciation is accelerated not constant.

Learn more in: https://brainly.com/question/17156804

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