Calculate depreciation using straight line and double declining balance method

Reminder, for the double declining method, total depreciation for the six years cannot exceed the maximum depreciation.

 

CEWEKTR2325 12 Facts: 13 Machine purchase. 14 Useful life 15 Salvage value 16 Cost to put machine into service 17 18 19 Initial Depreciable base 20 21 Maximum depreciation. 23 Depreciation per year 24 26 27 28 29 29 30 30 31 32 33 34 Years 1 1 2 2 3 4 5 6 Total straight line depreciation Depreciable Base $ $ $ $ $ $ $ $ $ 150,000 $ 6 years 18,000 15,000 Straight Line Depre. Rate Annual Depreciation Expense = 1/6 = 1/6 = 1/6 = 1/6 = 1/6 = 1/6 Initial Depreciable base Maximum depreciation Depreciation per year Years 1 2 3 4 5 6 Depreciable Base $ $ $ $ $ $ Total double declining balance depreciation DB Notes Initial depreciable bas Prior cost less deprec Prior cost less deprec Prior cost less deprec Prior cost less deprec Prior cost less deprec Double Declining Balance Depre. Rate Annual Depreciation Expense = 2/6 = 2/6 = 2/6 = 2/6 = 2/6 = 2/6 $