Accounting Question
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1
The depreciation shall be the same for all years under the straight-line method.
Annual depreciation under straight line method = (Cost - Salvage) / Life
Under the double-declining method, the depreciation shall be calculated by multiplying the beginning book value with the double-declining rate.
Double declining rate = 100% / life * 2
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