Tax Preparer Interview Questions and Answers

There are three main types of depreciation: straight-line, double declining balance, and units of production.

• Straight-line depreciation: Equal amount of depreciation is deducted each year over the useful life of the asset.

• Double declining balance depreciation: Accelerated method where depreciation expense is higher in the early years and decreases over time.

• Units of production depreciation: Depreciation is based on the actual usage of the asset, such as the number of units pr...read more