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Double Line method and the Straight Line Method

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Issue:

Business

 

Written by:

Margaret M

 

Date added:

March 23, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 426

 

Was viewed:

2528 times

 

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Essay content:

Further, the schedules will determine which will glean a higher net income for the organization for the year ending December 31, 2005. Double-declining balance method (DDB) Year 1: D= .50(100,000) = 50,000 Year 2: D= .50(100,000- 50,000) = .50(50,000) = 25,000 Year 3: D= .50(100,000-50,000-25,000) = ...
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In this case when calculating year four, we cannot go below the salvage value of 10,000 hence the amount of 2,500 is deducted from year three book value, hence year four ends with a 10,000 book value. Straight-Line Method The straight line method spreads the depreciation evenly over the life of the asset...
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