I need a help with the following question.
Compute Double Declining Balance Depreciation.
The company reported: The machine costs $75,000, and its estimated useful life is 5 years, after which the expected salvage value is $5,000. Compute depreciation expense and accumulated depreciation for each year using double declining balance. I calculated myself for the 5 years, but the 5th year number is larger than the salvage value. So please, show how you calculate DDB for the 5 years. To calculate, I used a Straight line method first. SL Depreciation rate =20%. So based on this, DDB depreciation rate is 2*20%= 40%.