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The following table demonstrates the double-declining balance method for the same asset. The depreciation rate is equal to double the depreciation rate for the straight-line method. The annual depreciation in the straight-line method is $2,000. Therefore the depreciation rate is $2,000 divided by $10,000, which is 20%. In the double-declining balance method this rate is doubled to 40%. Fill up the blanks.
Year Book value
(start of year) Depreciation Rate Depreciation expense Accumulated Depreciation Book value
(year end)
1 10000 40% 4000 4000
2 40% 2400 6400 3600
3 3600 40% 2160
4 2160 2160-160 160 8000 2000
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