Declining - straight-line rate, which is called the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Declining-balance depreciation.  Declining-balance depreciation provides another way for  companies to shift a disproportionate amount of depreciation expense to the first years of an asset's  useful life.  Declining-balance depreciation  is found by multiplying an asset's net book value (not its  depreciable cost) by some multiple of the straight-line rate for the asset. The straight-line rate is one  divided by the number of years in the asset's useful life. Companies typically use twice (200%) the 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: straight-line rate, which is called the double-declining-balance rate, but rates of 125%, 150%, or 175% of the straight-line rate are also used. Once the declining-balance depreciation rate is determined, it stays the same for the asset's useful life. Calculating Declining-Balance Deprciation...
View Full Document

This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

Ask a homework question - tutors are online