Question

what is the double declining depreciation schedule for a truck that was purchased fornPhp 2.5Million with a lifetime of 3 years and has a residual value of Php 250,000? Asset cost: Php2500000, Residual cost 250,000, cost residual2,250,000, DDB :66.67%, duration:3 years, Year:1Fraction:66.67% (year 1), Depreciation____, Net Book Value____. Year 2 Fraction:66.67%, Depreciation:_____, Net Book Value____. Year # , Fraction:66.67%, Depreciation:____. Net Book Value250,000.

Answer 1

The double declining depreciation method is also known as 200% declining balance method of depreciation, is a common form of accelerated depreciation. Compared to straight line method of depreciation, in accelerated depreciation the asset will be depreciated faster. Although the depreciation will be faster, the total depreciation over the life of the asset will not be greater than the total depreciaiton using SLM method. This could result in in double declining balance method will result in greater depreciat

Year	Applicable rate	Starting carrying value	Depreciation	Net book value
1	66.67%	2500000	1666750	833250
2	66.67%	833250	555528	277722
3	66.67%	277722	185157	92565

ion expense in each of the early years of an asset's life and smaller depreciation expense in the later years of an asset's life as compared to straight line depreciation.

Based on above