Please provide a step by step breakdown on how to compute do

Please provide a step by step breakdown on how to compute double declining balance depreciation

Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $32,000. The estimated useful life was four years, and the residual value was $3,400. Assume that the estimated productive life of the machine was 11,000 hours. Actual annual usage was 4,400 hours in year 1; 3,300 hours in year 2; 2,200 hours in year 3; and 1,100 hours in year 4.

Complete a depreciation schedule for double-declining-balance.

C. Double-declining-balance. Depreciation Accumulated Net Year Expense Depreciation Book Value At acquisition 4

Solution

Total Depreciable Amount (32000-3400)= 28600

Annual Depreciation Rate 100%/4=25%

Multiply the beginning period book value by the twice the regular annual rate 32000*50%=16000

YEAR	Depreation	Accumlate dep	NET BOOK VALUE
At Acq	0	0	32000
1	16000	16000	16000
2	8000	24000	8000
3	4000	28000	4000
4	2000	3000	2000