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Further, the schedules will determine which will glean a higher net income for the organization for the year ending December 31, 2005.
Double-declining balance method (DDB)
Year 1: D= .50(100,000)
= 50,000
Year 2: D= .50(100,000- 50,000)
= .50(50,000)
= 25,000
Year 3: D= .50(100,000-50,000-25,000)
= .50(25,000)
= 12,500
Year 4 D= .50(100,000-50,000-25,000-12,500)
= .50(12,500)
= 6,250
Declining-Balance at Twice
the Straight-Line
Rate (DDB)
Annual Depreciation Book Value
At Acquisition 100,000
2005 50,000 50,000
2006 25,000 25,000
2007 12,500 12,500
2008 2,500 10,000
Total 90,000
The Double-declining method is calculated utilizing the following formula: DDB rate = 2(100%/n)...
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