Accelerated Depreciation Methods

Question 1

Sum-of-the-years-degits

Answer 1

Years Remaining X (Cost-Salvage)/Sum of the years

Question 2

Double-Declining-Balance Equation

Answer 2

(Straight Line Rate X 2) X NBV= Depreciation

Example: SL Rate is for years or (1/4 or 25%), double declining is 50% (2X.25)

Question 3

With Double Declining Balance, do you subtract the salvage value?

Answer 3

NO!!

“ANNOYING SONG DDB NO SLG”