Question

A company recently paid $1,500,000 to buy a building with an estimated useful life of 20 years and a salvage value of $25,000. Prepare a depreciation schedule for the first 10 (TEN) years of the assets life using the double-declining-balance depreciation method.

Answer 1

Year	Book Value in Beginning	Depreciation Percent	Depreciation Expense	Accumulated Depreciation	Book Value at the end
1	$1,500,000	10%	$150,000	$150,000	$1,350,000
2	$1,350,000	10%	$135,000	$285,000	$1,215,000
3	$1,215,000	10%	$121,500	$406,500	$1,093,500
4	$1,093,000	10%	$109,350	$515,850	$984,150
5	$984,150	10%	$98,415	$614,285	$885,735
6	$885,735	10%	$88,574	$702,839	$797,162
7	$797,162	10%	$79,716	$782,555	$717,445
8	$717,445	10%	$71,745	$854,299	$645,701
9	$645,701	10%	$64,570	$918,869	$581,131
10	$581,131	10%	$58,113	$976,982	$523,018

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