Understanding Straight-Line and Double Declining Depreciation | FAR Exam Prep | Maxwell CPA Review

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Are you preparing for the FAR Exam and need to grasp the concepts of Straight-Line and Double Declining Depreciation? This video breaks down both methods with easy-to-follow examples. Learn how to calculate Straight-Line Depreciation using the formula: (Cost of Asset - Salvage Value) / Useful Life. Also, understand how Double Declining Depreciation accelerates asset depreciation by applying a higher percentage rate. We’ll walk you through a $100,000 asset with a $10,000 salvage value over a 10-year useful life to illustrate both methods. Enhance your FAR Exam preparation and accounting knowledge with this essential tutorial.

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Our goal at Maxwell CPA Review is to help you thrive in your accounting studies. Whether you're struggling through a college accounting course or are pursuing the CPA exams, we want to help these confusing concepts finally make sense!

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lemme just get clarification on double declining... for the 100, 000X 10% X 2, is 10% constant no matter the useful life? or is 10% because its a 10 year useful life? Also, what is the calculation in year 2 and 3 for the double declining? thanks!!

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