Chapter 16 Accounting for Plant Assets and Depreciation

The formula for the Declining Balance Method of Depreciation is as follows BOOK VALUE / USEFUL LIFE X ACCELERATION FACTOR = ANNUAL DEPRECIATION. The most common acceleration factors are 2 (DOUBLE DECLINING) and 1.5 (TIME AND A HALF DECLINING BALANCE). Let’s look at an example of each. First we will look at the Double Declining Balance Method. Say we have a $30000 … ................
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