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...
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