Chapter 6, Exercise 4ME. Book - Accounting, What the numbers mean 10th edition.

When you are doing part b - you are asked to calculate depreciation expense with the double declining method. You then have to show the affect on Net Income and Average Assets. Can you explain why you take the average of the difference between the straight line method of depreciation expense and the double declining balance? I am stuck on how to calculate the new average assets.

Beginning Net Income = $480,000

Avg Assets = $3,000,000

SL Depreciation = $25,000

DDB Depreciation = $65,000

Now calculate new ROI.