Under the Double-Declining Balance method, what value is multiplied by the depreciation rate?

Under the Double-Declining Balance method, the value that is multiplied by the depreciation rate is the book value of the asset at the beginning of each period. This method accelerates depreciation, allowing a larger expense to be recorded in the earlier years of an asset's useful life and a smaller expense in the later years.

The book value decreases each year as depreciation is recorded, meaning the depreciation expense in the next year will be based on a reduced book value. This characteristic of the Double-Declining Balance method effectively reflects the decreasing utility of the asset over time, aligning with the economic reality that some assets lose value more rapidly in their initial years of use.

The other options, while relevant to the topic of depreciation, do not represent the value used for calculating depreciation under this specific method. The depreciable base refers to the amount being depreciated but itself is not the value used directly for calculating annual depreciation in this method. The acquisition cost is the initial cost of the asset, but for the purpose of subsequent years' depreciation calculations, using the initial cost would not align with the purpose of the Double-Declining Balance method. The residual value is the estimated value of the asset at the end of its useful life and is not involved in the