Think you Know Depreciation, think again!
You may know this but I didn't. I know what straight line depreciation is and my reading tells me that double decling is 2 x Straight line. BUT this is not so! (I have verified this from more than one source including Cornelius Fitchner).
Look below - Straight Line is $9,000 annually in this case and so I assumed that DDL would be $18,000 - but look below and notice the two columns compared. Read the definition closely.
(10% of begin-salvage every year)
(20% of year\'s beginning book
value every year)
|Source: "Financial Accounting", John. J. Wild|
|Figure 2: Begin 100,000, Salvage 10,000|