Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $97,200 has an estimated residual value of $5,000 and an estimated useful life of 10 years, a. Determine the amount of annual depreciation by the straight-line method. 96,600 X b. Determine the amount of depreciation for the first and second years computed by the double-declining balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar. Depreciation Year 1 Year 2 Feedback Check My Work Asset cost minus residual value equals depreciable cost. Book value is the asset cost minus accumulated depreciation Learning Objective 2 Previous Next