The double-declining balance method is applied by (1) computing the asset's straight-line depreciation rate, (2) doubling it, (3) subtracting salvage value from cost, and (4) multiplying the rate times the book value.

Question

Quizplus · Accepted Answer

The double-declining balance method does not subtract the salvage value from the cost before applying the depreciation rate; it applies the doubled rate directly to the book value without considering salvage value until the end of the asset's useful life.

The Double-Declining Balance Method Is Applied by (1) Computing the Asset's