Will Do NV just purchased some equipment at a cost of €650,000.What is the proper methodology for computing the depreciation expense for year 3 if the equipment is depreciated using 20% reducing balances?

Question

Quizplus · Accepted Answer

The reducing balance method applies the depreciation rate to the book value at the beginning of each year. For year 3, the depreciation expense is calculated as the book value at the start of year 3 multiplied by the depreciation rate (20%).

Will Do NV Just Purchased Some Equipment at a Cost