Question

A building acquired at the beginning of the year at a cost of $89,200 has an estimated residual value of $3,600 and an estimated useful life of four years. Determine the following (a) The double-declining-balance rate (b) The double-declining-balance depreciation for the first year The double-dedining rate is two times the straight-ine rate When the double-declining balanoe method is used, the estimated residual value is not considered Learming Objective 2
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Answer #1

a) The double declining balance method -- 50% ( 2x 25%)

b) The double declining balance depriciation for the first year -- 44600 ( 2 x 25% x 89200 )

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