"Compute the book value at the end of 4 years using double-declining-balance (DDB) depreciation schedule for the following asset: Cost of the asset, I: $300,000. Useful life, N: 8 years. Salvage value, S: $34,000."
DDB method ignores salvage value.
Straight-line method (SLM) depreciation rate = 1/Useful life = 1/8 = 0.125
DDB depreciation rate = 2 x SLM rate = 2 x 0.125 = 0.5
DDB depreciation schedule as follows.
|DDB Depreciation Schedule|
|Year||Beginning-of-year Book Value ($)||Depreciation Rate||Annual Depreciation ($)||End-of-Year Book Value ($)|
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