Calculating Depreciation
	The Miller Company purchased a new headquarters building on January 1 at a cost of $40 million.
	The building is expected to last 20 years, at which time its residual value is expected to be $5 million.
	Cost of Building	$ 40,000,000
	Salvage Value	$ 5,000,000
	20 year depreciation schedule
	Straight-line depreciation	Depreciation Expense	Accumulated Depreciation	Net Book Value (Cost of Asset less Accum. Dep)
	Year 1
	Year 2
	Year 3
	Double Declining depreciation [2/20 = 10%]	Depreciation Expense	Accumulated Depreciation	Net Book Value (Cost of Asset less Accum. Dep)
	Year 1
	Year 2
	Year 3