Which method provides more depreciation expense in the earlier years of an asset's life?

The declining balance method provides greater depreciation expense in the earlier years of an asset's life because it applies a constant depreciation rate to the diminishing book value of the asset each year. This approach results in higher depreciation charges at the beginning when the asset is brand new and has its highest value, decreasing over time as the asset's value reduces.

By emphasizing early years, this method aligns with the reality that some assets tend to lose value more rapidly at the start of their useful life due to factors such as initial usage and technological obsolescence. Consequently, this method is often favored for tax purposes, allowing businesses to recover costs sooner.

In contrast, the straight-line method spreads the cost of an asset evenly over its useful life, leading to consistent and lower expense recognition each period. The units of production method ties depreciation to actual usage, which can result in varying amounts depending on the asset's production activity rather than timing. The sum-of-the-years'-digits method also front-loads depreciation, but its calculation differs significantly from the declining balance method, leading to a different expense recognition profile.