International Journal of Business, Management and Commerce (IJBMC)

This illustrative study examined depreciation methods of straight-line, accelerated, units of production (activity), and sum-of-digits methods of depreciation under U.S. Generally Accepted Accounting Principles (GAAP). The study employed a combination of pedagogical approaches, including lectures, practical examples, interactive learning, and problem-solving to enhance student comprehension. The results suggest that active engagement strategies help students recall information and think critically. The straight-line technique is easier than the accelerated method since it spreads out the depreciation costs evenly over the life of the depreciable asset. The accelerated method, on the other hand, shows a higher depreciation expense in the early years of the asset, thus lowering the company's taxable income. The accumulated depreciation using the units of production (activity) method depends on the use of the assets from period to period.