You are on page 1of 2

Useful life of assets = $75000 / $7,500 = 10 years

Years assets have been depreciated = 30,000 / 7,500 = 4 years


The assets have been depreciated for four years. So the assets were purchased at the beginning of
2010.
100% / 10 yrs = 10% (annual straight-line depreciation rate)
10% x 2 = 20% (annual double-declining depreciation rate.
2010
Beginning Book Value
75000
Depreciation Expense
75000 x 20% = $15,000
Accumulated Depreciation
15,000
Ending Book Value
75000 - 15000 = $60,000
2011
Beginning Book Value
$60,000
Depreciation Expense
60,000 x 20% = $12000
Accumulated Depreciation
15,000 + 12,000 = $27,000
Ending Book Value
75000 - 27000 = $48,000
2012
Beginning Book Value
$48,000
Depreciation Expense
48,000 x 20% = $9,600
Accumulated Depreciation
27,000 + 9,600 = $36,600
Ending Book Value
75,000 - 36,600 = $38,400

2013
Beginning Net Asset Value
$38,400
Depreciation Expense
38,400 x 20% = $7,680
Accumulated Depreciation
36,600 + 7,680 = $44,280
Ending Net Asset Value
75,000 44,280 = $30,720

You might also like