What is the book value of the truck at the end of year 1? Do not put any decimal place
Depreciation: Depreciation is the method of allocating the cost of an asset to its useful life. The major methods used in depreciation are
Double declining balance method or the declining-balance method using double the straight-line rate: This is a method of depreciating the cost of the asset to its useful life using a depreciation rate that will be double of the straight-line depreciation rate
The calculation of depreciation amount in Double declining balance method or the declining-balance method using double the straight-line rate:
Depreciation amount in Double declining balance method or the declining-balance method using double the straight-line rate = Opening Book value of the asset (ending book value of the previous year) * Depreciation rate
Here Depreciable cost will be = Opening Book value of the asset (ending book value of the previous year) (here we will not reduce the salvage value of the asset)
and depreciation rate will be = (1 / useful life * 100) * 2
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