Homework Answers
Annual depreciation rate as per straight line method=100%/10=10%/year
Hence depreciation as per double decline=2*Annual depreciation rate as per straight line method*Beginning value of each period
| Year | Beginning value | Depreciation | Ending value |
| 1 | 40,000 | (2*10%*40,000)=8000 | (40,000-8000)=$32,000 |
| 2 | 32,000 | (2*10%*32,000)=$6400 |
Hence depreciation for 2nd year=$6400
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