Refer to the Day-Care Center scenario. Compute the depreciation expense for June 1 through December 31 of the first tax year and all 12 months of the second and third years.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation rate, reducing the book value of assets more quickly.

Resale Value

The estimated value for which an asset can be sold in the marketplace at a future date, often considered for vehicles and property.

Equipment

Devices or tools necessary for completing specific tasks or operations, often used in various industries.