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Question regarding double declining depreciation
Hi fellow candidtes, in question 16 of reading 25, the answer says the double declining depreciation is twice the rate of what the straight line depreciation would be… (which is actually asked on question 15). Wouldn’t the rate be 55,000/600,000 = 9.1% x 2 = 18.2%? Looks like for straight depreciation in this case they do not substract the salvage value - is that the way it should be calculated for accelerated depreciation then?
Thanks! |
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