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    akbkarma's Avatar
    akbkarma Posts: 6, Reputation: 1
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    #1

    May 31, 2009, 11:15 PM
    Double-Declining Method
    A company uses the double-declining method. It acquires a long lived asset for $200,000 and assigns a $20,000 salvage to it. How much of its cost will be allocated to 2009 assuming the asset was placed in service 7/01/08 and has a 5 year life?

    I got that the Declining Rate is 40 %, and that it would depreciate $80,000 in the first year and then $48,000 the second year. Am I suppose to count the remainder of 2008 from the $80,000 and then the $48,000 from the 2009? I am totally confused.



    I am not asking for the answer, I came up with most of it on my own, I am just lost on the last part. Whether I am suppose to count the remainder of 2008 and all of 2009.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 1, 2009, 12:42 AM

    Please see the guidelines for posting homework problems:
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