To calculate the double declining-balance rate, you would use half the straight-line rate.

Straight-line Rate

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Double Declining-balance

An accelerated method of depreciation where the book value of an asset is reduced at double the rate of its straight-line depreciation.

Ascertain the depreciation cost utilizing diverse methods, like straight-line, double declining-balance, and units-of-production procedures.

Verified Answer

Final Answer :

False

Explanation :

The double declining-balance rate is actually twice the straight-line rate, not half.

Learning Objectives

Ascertain the depreciation cost utilizing diverse methods, like straight-line, double declining-balance, and units-of-production procedures.