Accounting for Depreciation

Straight-line method
 Depreciable cost x % Depreciation Accumulated Book Value
(24,000 – 2,000) x 20% expense Depreciation 24,000
1 22,000 x 20% 4,400 4,400 19,600
2 22,000 x 20% 4,400 8,800 15,200
3 22,000 x 20% 4,400 13,200 10,800
4 22,000 x 20% 4,400 17,600 6,400
5 22,000 x 20% 4,400 22,000 2,000
Units-of-Activity Method
 Depreciable cost ÷ Total U of A Depreciation Accumulated Book Value
(24,000 – 2,000) ÷ 10,000 expense Depreciation 24,000
1 2.20 x 2,100 4,620 4,620 19,380
2 2.20 x 1,500 3,300 7,920 16,080
3 2.20 x 2,600 5,720 13,640 10,360
4 2.20 x 1,800 3,960 17,600 6,400
5 2.20 x 2,000 4,400 22,000 2,000
Double-declining-balance method
 Book Value x (S/L rate x 2) Depreciation Accumulated Book Value
24,000 x 40% expense Depreciation 24,000
1 24,000 x 40% 9,600 9,600 14,400
2 14,400 x 40% 5,760 15,360 8,640
3 8,640 x 40% 3,456 18,816 5,184
4 5,184 x 40% 2,073.60 20,889.60 3,110.40
5 3,110.40 – 2,000 1,110.40 22,000 2,000