As i have been reviewing for my accounting final, some of the things have stuck in my head, one being the different methods of depreciation. I realize that this is a personal preferance, but i was wondering what method you guys use for your business. Option 1) Straight line- You buy an asset for $5000, has a useful life of 4 yrs, and a scrap value of $1000. That would make depreciation $1000 per year. Option 2) Double declining- You buy an asset for $5000, has a useful life of 4 yrs, and a scrap value of $1000. That would make depreciation something lkie this: 1st year: $2500, 2nd year: $1250, 3rd year: $250, 4th year: $0 (Im not positive of the 3rd and 4th year ammounts) Option 3) Per unit- You buy the asset for $5000, has a useable life of 2000 hours, and a scrap value of $1000. That would make depreciation at $2 per hour. I think that per unit would be the best for our industry since we are reasonably sure of our equipment's life and we base most of our work on hourly costs and rates. With that being said, what do you all use and why?