Calculating Depreciation Expense for the First Two Years

Partial Depreciation for Year 1

Full Year Deprecation for Year 2

Double-Declining Balance Depreciation

Third: Multiply DDB Percentage X Book Value at the

Beginning of Each Year

***The Book Value for Year 1 is always the Original Cost, $300,000, because No Depreciation Expense had happened yet. (Semantic trickery) Smiles

Year 1

DDB Percent X BV Year 1 = $

% X $300,000 = $

***Now, Divide this Total Annual Depreciation for Year 1 into 12 months.

Then, Calculate this Monthly amount for 3 months: Oct, Nov, Dec.

Your calculation is the Answer for the Depreciation Expense for Year 1

***Then, Subtract this total from the BV at the beginning of Year 1, which is the Original Cost of $300,000.

Your answer becomes the Book Value at the Beginning of Year 2

Calculating Depreciation Expense for the First Two Years

Partial Depreciation for Year 1

Full Year Deprecation for Year 2

Double-Declining Balance Depreciation

Full Year Deprecation for Year 2

Multiply DDB Percentage X Book Value at the

Beginning of Year 2

Calculating Depreciation Expense for the First Two Years

Partial Depreciation for Year 1

Full Year Deprecation for Year 2

***This is an optional page for you to record your Answers in a Summary Format:

Straight-Line Method

Year 1 Depreciation Expense $ ____________________

Year 2 Depreciation Expense $ ____________________

Units of Production Method

Year 1 Depreciation Expense $ ____________________

Year 2 Depreciation Expense $ ____________________

Double-Declining Balance Method

Year 1 Depreciation Expense $ ____________________

Year 2 Depreciation Expense $ ____________________