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Ch. 8 - Long Lived AssetsWorksheetSee all chapters

# Depreciation: Declining Balance

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Sections
Initial Cost of Long Lived Assets
Ordinary Repairs vs. Capital Improvements
Depreciation: Straight Line
Depreciation: Declining Balance
Depreciation: Units-of-Activity
Depreciation: Summary of Main Methods
Depreciation for Partial Years
Retirement of Plant Assets (No Proceeds)
Sale of Plant Assets
Change in Estimate: Depreciation
Intangible Assets and Amortization
Natural Resources and Depletion
Asset Impairments
Exchange for Similar Assets

Concept #1: Double Declining Balance (DDB) Depreciation

Example #1: Double Declining Balance (DDB) Depreciation

Practice: ABC Company purchased a new machine on January 1, Year 1 for $44,000. The company expects the machine to last ten years. The company thinks it could sell the scrap metal from the machine for$4,000 at the end of its useful life. If the company uses the double-declining method for depreciation, what will be the net book value of the machine on December 31, Year 2?

Practice: DBQ Company purchased a machine on January 1, Year 1 for $60,000. The company estimated a five year useful life and$8,000 residual value. If the company uses the double-declining-balance method for depreciation, what will be the amount of accumulated depreciation on December 31, Year 2?

Practice: XYZ Company purchased a machine on January 1, 2018 for $120,000. The company estimated a four year useful life and$4,000 residual value. If the company uses the double-declining-balance method for depreciation, what will be the amount of depreciation expense for the year 2021?