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Kind of confused on this. So XYZ purchased 100,000 in equipment, it will be depreciated using...

Kind of confused on this. So XYZ purchased 100,000 in equipment, it will be depreciated using straight line over 4 years for book purposes and double declining over 4 years for tax purposes. I calculated the Double Declining Depreciation as follows: 100,000/4=25,000 25,000/100,000=.25 .25x2=.50 100,000x .50=50,000 Would this be reported as a deduction for tax? Or how would it be reported?

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Answer #1

. Formula for double declining depreciation is - = 2 x Straight line depreciation rate x Book value • Straight line depreciat

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