A lady purchases a computer for 8000 on July 1 2012 She inte

A lady purchases a computer for $8,000 on July 1, 2012. She intends to depreciate it over 4 years using the double-decling-balance method. Salvage value is $1,000. What would be the depreciation for 2013?

Solution

Calculate depreciation for 2013 :

Straight line dep rate = 100/4=25%

Double decline dep rate = 25*2=50%

2013 Dep = (8000*50%*6/12+8000*50%*50%*6/12) = $3000

so depreciation for 2013 is $3000