The formula for computing annual depreciation expense using the double declining balance method includes the cost of the asset, its salvage value, and the expected useful life of the asset.

Question

Quizplus · Accepted Answer

The double declining balance method does not directly use the salvage value in the calculation of the annual depreciation expense; it primarily uses the book value at the beginning of the period multiplied by a double rate of the straight-line method. The salvage value is considered indirectly, as depreciation is not calculated once the book value reaches the salvage value.

The Formula for Computing Annual Depreciation Expense Using the Double