Asked by Susannah Reilly on Jun 28, 2024
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The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method.
Double-Declining-Balance Rate
A method of accelerated depreciation that applies a constant rate, which is double the straight-line rate, to the declining book value of an asset each year.
Straight-Line Rate
A method of calculating depreciation of an asset, dividing its cost by the number of years in its useful life.
Depreciation Expense
The structured spreading of the expense associated with a tangible asset across its useful life.
- Dedicate oneself to understanding the essential ideas of asset depreciation and the variables shaping its framework.
- Use the double-declining-balance method to ascertain asset depreciation and appreciate its effect on the appraisal of asset value.
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Learning Objectives
- Dedicate oneself to understanding the essential ideas of asset depreciation and the variables shaping its framework.
- Use the double-declining-balance method to ascertain asset depreciation and appreciate its effect on the appraisal of asset value.