Asked by Judie Alfaro on May 10, 2024
Verified
To calculate the double declining-balance rate, you would use half the straight-line rate.
Straight-line Rate
A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.
Double Declining-balance
An accelerated method of depreciation where the book value of an asset is reduced at double the rate of its straight-line depreciation.
- Ascertain the depreciation cost utilizing diverse methods, like straight-line, double declining-balance, and units-of-production procedures.
Verified Answer
ML
Mikayla LewisMay 16, 2024
Final Answer :
False
Explanation :
The double declining-balance rate is actually twice the straight-line rate, not half.
Learning Objectives
- Ascertain the depreciation cost utilizing diverse methods, like straight-line, double declining-balance, and units-of-production procedures.