Double Declining Balance Method of Depreciation

Question 1

define depreciation

Answer 1

the process of reducing a fixed tangible asset’s book value due to
- use
- wear & tear
- obsolescence
- passage of time

Question 2

define double declining balance depreciation

Answer 2

an accelerated variable cost depreciation method where the expense is higher in the earlier years

Question 3

what is step 1

Answer 3

write down what you know

Question 4

what is step 2

Answer 4

build a depreciation schedule

Question 5

what is step 3

Answer 5

calculate depreciation expense, accumulated depreciation and book values for each period

Question 6

how do you calculate depreciation expense with double declining balance

Answer 6

2 * S-L Depreciation Rate * Opening Book Value