Activity: Double-Declining Balance Method

Equipment cost $24,000

Useful Life 5 years

Residual value $2000

Calculate the double-declining rate to depreciate the equipment

Use table to document and calculate the depreciation expense for the equipment

	Formula	Dollar Values	Answer

1 DDB	1 Depreciation	1 of the	1 period.	2 End of	2 Period
Year	Beg.Book Value	Depreciation Rate	Depreciation Expense	Accumulated Depreciation	Ending Book Value
1
2
3
4
5

Partial-Year Depreciation

When a plant asset is acquired during the year, depreciation is calculated for the fraction of the year the asset is owned.

Example: Assume our machinery was purchased on October 8, 2014. Calculate the depreciation expense for December 31, 2014 using the straight-line method.