📊 Asset Information
📋 Depreciation Schedule Comparison
| Year | Straight-Line | Double-Declining | ||||
|---|---|---|---|---|---|---|
| DepExp | AccDep | BookValue | DepExp | AccDep | BookValue | |
Straight-Line Formula: (Cost Value - Residual Value) / Useful Life
Double-Declining Balance Rate: (2 / Useful Life) × (Cost Value - Accumulated Depreciation)
📊 Annual Depreciation Expense
📈 Accumulated Depreciation
📉 Book Value Over Time
💡 Key Implications
- Total Depreciation: The sum of depreciation expenses over the asset's useful life equals the depreciable cost (Cost - Residual Value), regardless of the method used.
- Double-Declining Balance Pattern:
- Depreciation expense is highest in the first year
- Depreciation expense decreases each subsequent year
- The final year is adjusted to ensure the book value equals the residual value
- Method Selection Impact: While both methods depreciate the same total amount, the timing differs. DDB accelerates expense recognition, which can affect:
- Net income in early years (lower with DDB)
- Book value of assets on the balance sheet
Note: Under the double-declining-balance method, the depreciation calculation for the final year is adjusted to ensure that the ending book value equals the residual value. This means the final year's depreciation is simply the remaining depreciable amount needed to reach the residual value, rather than applying the standard DDB formula.