Lesson 6: Comparative Analysis of Depreciation Methods
Duration of Days: 3
Lesson Objective
Students will calculate and compare straight-line, units of production, and double declining balance depreciation methods and evaluate which method most accurately reflects asset usage in different business scenarios.
How do the three depreciation methods differ?
How does each method impact net income over time?
Does each method result in the same total depreciation?
Which method best represents asset usage in different industries?
Straight-Line Depreciation
Units of Production
Double Declining Balance
Accelerated Depreciation
Book Value
Depreciation Expense
Accumulated Depreciation
Cost Allocation
B. Accounting Principles: Identify and describe GAAP principles and explain their impact on recording and financial reporting.
C. Accounting Process: Complete steps of the accounting cycle and analyze financial statement impact.
Analyze and describe how business transactions impact the accounting equation.
Students apply multi-step mathematical reasoning across three calculation methods and analyze patterns over time. They interpret quantitative data, compare financial outcomes, and justify conclusions using evidence—skills aligned with SAT math and analytical reasoning standards.
Description of Lesson:
Students are given one asset scenario (same cost, salvage value, and useful life).
Purpose: The purpose of this lesson is to develop higher-order thinking by requiring students to compare accounting methods and evaluate which method best reflects economic reality.
DOK Level Questions:
Level 1
List the three depreciation methods studied.
Level 2
Calculate Year 1 depreciation under each method for the same asset.
Level 3
Explain why total depreciation over the life of the asset is the same under all three methods.
Level 4
Evaluate which method would be most appropriate for:
• A manufacturing machine
• Office furniture
• Rapidly changing technology equipment
Students examine how companies in different industries may select different methods.
Students may confuse accelerated depreciation with “more” depreciation overall.
Provide a structured comparison chart template
Model one full example before independent analysis
Small group support for DDB calculations
Excel spreadsheet option for organizing calculations
Sentence starters for written justification
Visual graph comparing expense patterns across methods
Completed comparison chart
Written justification selecting the most appropriate method for given scenarios
Exit Ticket explaining which method produces higher early-year net income and why
Short quiz comparing financial impacts
Century 21, Accounting General Journal, 11th edition (print or MindTap)
Depreciation comparison worksheet
Graphic organizer chart
Calculator or Excel template
Whiteboard or presentation slides
Do Now and Exit Ticket