Difference between Straight Line Method and Double Declining Depreciation

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Most companies use the straight-line method to record depreciation for property, plant, and equipment. The straight-line method results in an equal amount of depreciation being recorded each year of an asset's useful life. The double-declining balance method, on the other hand, results in higher amounts of depreciation being recorded in the early years of the asset's life and lower amounts of depreciation being recorded in the later years of an asset's life.

Both the straight-line method and double-declining method result in the same total amount of depreciation being recorded over the asset's useful life.
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Комментарии

I hate accounting. Thanks for explaining

dhoni

I love seeing how creative the bookkeeping can get with depreciation.

MyFinancialFocus

Thank you I’m going to have test on ppe real soon this is perfect time

jkks

nice demo. I love illustrations. Question: what if you take the asset out of business at year 4?

ochicoloto

Can you please explain why salvage value is not subtracted while calculating yearly depreciation for double declining method

mattyboy

Do Autos used for business have a zero salvage value?
Ie are they DB 200 down to zero in year five?
Thanks

davidahrens

How did you come up with 1600 for year 4? thanks

Canuck

I hope the salvage value has to be deducted in the beginning.

thomasjoseph

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