Calculation, using data from Bill’s pizza example:
1. Annual Depreciation Rate
If rate is twice the straight line rate, then diminishing depreciation rate is 20% x 2 = 40%
2. Depreciation Expense
Yr 1: CA x 40%: $13,000 x 40% = $5,200
Yr 2: CA ($13,000 - $5,200) = $7,800 x 40% = $3,120
and so on...