Homework Answers
Calculation of depreciation under double declining balance method.
Cost of Assets = $20,000
Useful Life = 5 years
Salvage value = $5,000
Depreciable base = $20,000-$5,000
= $15,000/5
Annual Depreciation = $3,000
Rate of depreciation = $3,000/$15,000
= .2 or 20%
So under double declining method rate of depreciation will be 20%*2 = 40%
Depreciation Amount under Double declining
= $20,000*40%
= $8,000
So, the book value of asset ath end of year will be $20,000-$8,000 = $12,000
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