Lesson 18 5

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Lesson 18 5

  1. 1. LESSON 18-5 Declining-Balance Method of Depreciation CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
  2. 2. 2 CALCULATING DEPRECIATION USING THE DOUBLE DECLINING-BALANCE METHOD page 551 1 2 3 4 1. Calculate the double declining-balance rate. 2. Determine the annual depreciation expense. 3. Determine the ending book value. 4. Transfer the ending book value to the beginning book value for the following year. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-5
  3. 3. CALCULATING THE LAST YEAR’S DEPRECIATION EXPENSE 2 3 page 552 3 1 1. Transfer the ending book value from Year 4 to the beginning book value of Year 5. 2. Subtract the salvage value from the beginning book value to determine the depreciation expense for the last year. 3. Verify that the ending book value is equal to the salvage value. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-5
  4. 4. 4 COMPARISON OF TWO METHODS OF DEPRECIATION CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 553 LESSON 18-5
  5. 5. 5 TERM REVIEW page 554  declining-balance method of depreciation CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-5
  6. 6. 5 TERM REVIEW page 554  declining-balance method of depreciation CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-5

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