ACCT 2401 Chapter 9 Homework c. Double-Declining-Balance Method (DDB): Double-Declining Rate Year Cost 1 2 **4 5 Double- Declining Rate 20 40 60 80 = (100% useful life) X 2 % $ % $ % $ % $ Declining Book Value 68000 40800 Plug Amount Total = (100%= 5 DEPR. EXPENSE $ 27000 $ 16320 $ $ $ $ X2 9792 5875 ACCUM. DEPR. = 20 %. Book Value $ 68,000 $ 40800 $ 24,480 $ 27200 $ 43,520 $ 53312 $ 14,688 $ 59187 $ 8813 3525* $ 62712 $ 5288 60,000* *The total depreciation must equal the cost - residual value, $60,000. Under the double-declining balance method a plug amount is often needed for the last year since this process is subject to rounding. ** Round depreciation expense to the nearest whole dollar