How do I find the double decling-balance method. For my straight-line method
I got

At the beginning of the current year, Phoenix Company acquired an item of machinery for 160,000. The machinery had a life expectancy of four years an estimated salvage value of 16,000.

For the straight-line method I did 160,000-16,000=144,000/4=36,000

year 1 X 36,000 depreciation expense 36,000 Accumulated depre. 36,000 book Value 124,000
year2 36,000 72,000 88,000
year 3 36,000 108,000 52,000
year 4 36,000 144,000 16,000
year 5 36,000 180,000 20,000

How do I get the double declining-balance method

Year 1 depreciation expense accumulated depr. Book value end of year
year 2
year 3
year 4
year 5

Now I need to caculate depreciation by two different method for partial years
straight-line method
Year 1 depreciation expense accumulated depre. Book value end of year
year 2
year 3
year 4
year 5
year 6
double declining-balance depreciation expense Accumulated depre. Book value
year 1
year 2
year 3
year 4
year 5
Can you explain this too me I have a test Monday moring.

Quote:

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Originally Posted by kizzyb

At the beginning of the current year, Phoenix Company acquired an item of machinery for 160,000. the machinery had a life expectancy of four years an estimated salvage value of 16,000.

For the straight-line method i did 160,000-16,000=144,000/4=36,000

year 1 X 36,000 depreciation expense 36,000 Accumulated depre. 36,000 book Value 124,000
year2 36,000 72,000 88,000
year 3 36,000 108,000 52,000
year 4 36,000 144,000 16,000
year 5 36,000 180,000 20,000

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Useful life of 4 years, and yet you have done an amortization schedule for 5?

Here is what the answer should be:
160,000-16,000= 144,000/4= 36,000

a) straight-line amort.
Yr--Dep Exp---Acc. Amort----BV
1---36,000---36,000---124,000
2---36,000---72,000---88,000
3---36,000---108,000---52,000
4---36,000---144,000---16,000

NOTE: Only 4 yrs.


b) DDB method
36,000/144,000 = .25 x 2 = 50%

Yr--Dep Exp---Acc. Amort----BV
1---80,000---80,000---80,000
2---40,000---120,000---40,000
3---20,000---140,000---20,000
4---4,000---144,000---16,000

Are you suppose to use the half life rule as some of your examples contradict each other?