Calculate depreciation using Straight Line, Declining Balance, and Double Declining Balance methods
Equal depreciation each year over the asset's useful life.
Higher depreciation in early years, decreasing over time.
| Year | Beginning Value | Depreciation | Accumulated Dep. | Ending Value |
|---|
$50,000
$45,000
5 Years
20%
Equal annual depreciation = (Cost - Salvage Value) / Useful Life. Simplest method, spreads cost evenly.
Accelerated depreciation using a fixed percentage of the book value. Typically 1.5× the straight-line rate.
Most accelerated method using 2× the straight-line rate. Switches to straight-line when beneficial.
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