00:01
The machine has an estimated salvage value of p10 ,000 at the end of its useful life of 8 years.
00:13
Compute the first cost of the machine if the total depreciation at the end of the fourth year using double declining balance method is 957 .31 .25.
00:34
So depreciation per year using this depreciation method is given as follows.
01:08
So the useful life was 8 years so plug in 8 for life.
01:21
So we have 1 divided by 8 times 200.
01:31
Then we get 25 percent.
01:33
So that's the depreciation per year.
01:39
So the double declining balance method is a form of accelerated depreciation method.
01:46
The asset value is depreciated at twice the rate it is done in a straight line method.
01:51
So it's accelerated depreciation.
01:55
That's why we are multiplying by 200 percent.
02:05
So now we can create a table...