Which depreciation method allows for an accelerated depreciation rate?

The method that allows for an accelerated depreciation rate is the double-declining balance method. This approach allocates a larger amount of the asset's cost as an expense in the earlier years of its useful life and decreases the depreciation expense in later years. This occurs because the double-declining balance method applies a constant depreciation rate that is double that of the straight-line method to the remaining book value of the asset at the end of each year.

In comparison, the straight-line method distributes the cost evenly across the useful life of the asset, resulting in a consistent expense each year without providing any acceleration. The sum-of-the-year's-digits method also accelerates depreciation, but it is not as aggressive as the double-declining balance method. The units of production method ties depreciation to actual usage, making it less predictable in terms of annual expense allocation. Therefore, the double-declining balance method is notable for providing the most significant tax and cash flow benefits during the initial years of asset ownership due to its accelerated rate.