Double Declining balance method: The rate of depreciation expense under double declining balance method is double or twice of straight line method . The book value or carrying value of the assets is used for the calculation of depreciation expense during a specified year. Gain or Loss on Sale of Asset: It is a financial advantage procured over the sale of an asset. The difference between the carrying value or book value of an asset and the amount of cash received for the sale of the asset is called gain or loss on sale of asset. If the amount of cash received is more than the carrying value of the asset, it is a gain on sale of asset and if the amount of cash received is less than the carrying value of the asset, it is a loss on sale of asset. To determine: Journalizing the depreciation expense for 2018 and sale of the fixtures on October 31, 2018

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Chapter 10, Problem E10.22E

To determine

Double Declining balance method:

The rate of depreciation expense under double declining balance method is double or twice of straight line method. The book value or carrying value of the assets is used for the calculation of depreciation expense during a specified year.

Gain or Loss on Sale of Asset:

It is a financial advantage procured over the sale of an asset. The difference between the carrying value or book value of an asset and the amount of cash received for the sale of the asset is called gain or loss on sale of asset. If the amount of cash received is more than the carrying value of the asset, it is a gain on sale of asset and if the amount of cash received is less than the carrying value of the asset, it is a loss on sale of asset.

To determine:

Journalizing the depreciation expense for 2018 and sale of the fixtures on October 31, 2018

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