Double-Declining-Balance Depreciation A small delivery truck was purchased on Ja

Question

Double-Declining-Balance Depreciation

A small delivery truck was purchased on January 1 at a cost of $29,600. It has an estimated useful life of four years and an estimated salvage value of $5,920.

Prepare a depreciation schedule showing the depreciation expense, accumulated depreciation, and book value for each year under the double-declining-balance method. If an amount box does not require an entry, leave it blank.

Small Delivery Truck Depreciation Schedule On January 1


Year

Book Value
Beginning of Year x


Rate (%) =


Depreciation Expense Accumulated Depreciation
End of Year

Book Value
End of Year 1 $ $ $ $ 2 3 4

Explanation / Answer

Book value

At Beggining of year

Year

Book value

At Beggining of year

Rate % Depreciation expenses Accumulated depreciation end of year Book Value at the end of year 1 29,600 25% 29600*25% = 7,400 7,400 22,200 2 22,200 25% 5550 12,950 16,650 3 16,650 25% 4,162.50 20,812.50 8,787.50 4 8,787.50 25% 2,197 23,009 6,591

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