[Anonymous]

So I seem to have a conflict of understanding on how DDB works when it gets closer to the end of the asset’s life.

Do you switch to Strait Line when the current depr exp drops below what it would be with SL? (This is from Jeff’s Ninja Notes)

Or do you do DDB all the way till you hit the salvage value and stop? (This is from Becker Final Review)

[HustlinHustlin]

If it is the last year of depreciation you take:

Asset cost – accumulated deprecation (remaining balance of asset)

-Salvage Value

= Depreciation expense for that year

Note that you cannot depreciate an asset below salvage value, so if you do normal DDB and it is below salvage value (or zero if no salvage) then use this formula

B 71 - 79 EXPIRED
A 69 - 75 EXPIRED
R 65 - 48 - 45
F 56 - 61 - 65 - 64

Becker, Wiley Test Bank, Wiley Text and Ninja Notes

"The fish who keeps on swimming is the first to chill upstream" -311

Experience - Done, like WAAAY done.
Still need 30 more credits, in basket weaving (gotta love new CA requirements)

[Author]

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