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AccountingIQEquipment costs $60,000 with a 5-year life, no salvage. What is Year 2 double-declining depreciation?
Double-declining balance applies twice the straight-line rate to book value.
The rate is 2 × 20% = 40%. Year 1 takes $24,000, leaving $36,000 of book value. Year 2 is 40% × $36,000:
Depreciation ExpenseDr 14,400
Accumulated DepreciationCr 14,400
Depreciation stops once book value reaches salvage value...
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