1. CALCULATING DEPRECIATION USING THE DOUBLE
DECLINING-BALANCE METHOD
+ −
÷ ×
Estimated Years of Straight-Line
Depreciation Estimated Rate of
Expense ÷ Useful Life = Depreciation
100% ÷ 5 = 20%
Straight-Line Double
Rate of Declining-Balance
Depreciation × 2 = Rate
20% × 2 = 40%
Lesson 21-5, page 564
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Educational Publishing

2. CALCULATING DEPRECIATION USING THE DOUBLE
DECLINING-BALANCE METHOD
1
2 3
4
1. Enter the double declining-balance rate.
2. Determine the annual depreciation expense.
3. Determine the ending book value.
4. Transfer the book value to the following year.
Lesson 21-5, page 564
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Educational Publishing

3. CALCULATING THE LAST YEAR’S DEPRECIATION
EXPENSE
2 3
1
1. Transfer the book value.
2. Determine the last year’s depreciation.
3. Verify the ending book value.
Lesson 21-5, page 565
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Educational Publishing

4. COMPARISON OF THE TWO METHODS OF
DEPRECIATION
Lesson 21-5, page 566
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Educational Publishing

5. TERMS REVIEW
declining-balance method of depreciation
Lesson 21-5, page 567
© South-Western
Educational Publishing