Question

Delaney purchasedused van for use in its business on January 1, 2017 paid $18,000 for the van Delaney expects the won to have a useful 40.000 miles during 2017. 40,000 miles during 2018 9,000 miles in 2010 and 70,000 in 2020, for total expected of 165.000 four years, with an estimated result of $1.500 Deney expects to drive the Read the requirements Com b os Entrane values) Annual Depreciation Expense Accumulated Depreciation Book

Answer 1

Answer-

Depreciation Schedule-Double Declining Balance Method
YEAR	COST $	Depreciation Rate	Depreciation $	Accumulated Depreciation $	Book Value $
1	18000	50%	9000	9000	9000
2		50%	4500	13500	4500
3		50%	2250	15750	2250
4		50%	750	16500	1500

Explanation- Double Declining balance depreciation is calculated using the following formula:

Depreciation = Depreciation Rate * Book Value of Asset

Depreciation rate is given by the following formula:

Depreciation Rate = Accelerator *Straight Line Rate

Straight-line Depreciation Rate = 1/4 = 0.25 = 25%
Declining Balance Rate = 2*25% = 50%