How do I use the double-declining-balance method, a time-based method, to calculate the depreciation expense for Asset A in year 2017?
Homework Answers
Depreciation for 2015 = $100000 x 40% = $40000
Depreciation for 2016 = ($100000-40000) x 40% = $24000
Depreciation for 2017 = ($100000-40000-24000) x 40% = $14400
Double Depreciation Rate = 2/5 = 40%
Answer is b. $14,400
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