Chapter 8, Problem 10DQ

To determine

Double declining balance method:

Under this method depreciation rate is taken as double of rate used in the straight line method of depreciation. It is also called 200% declining method. In this method the amount of depreciation is higher in the initial years and lowers in future years.

Natural Resources: Natural resources are those resources that are naturally available and are not man made. They are the assets that are physically consumed when used. Examples are minerals, oil, timber and gas fields.

To Identify: If the declining method an acceptable way to compute depletion of natural resources.