I think it's because you already subtract the salvage value in the Straight-Line method before using the double declining method. So basically, you find the Straight-line method to find the depreciation value, and then you double the depreciation rate only making it from like 10% to 20%, and subtracting the salvage value again just wouldn't make any sense.
I hate accounting. Thanks for explaining
I love seeing how creative the bookkeeping can get with depreciation.
Thank you I’m going to have test on ppe real soon this is perfect time
nice demo. I love illustrations. Question: what if you take the asset out of business at year 4?
Can you please explain why salvage value is not subtracted while calculating yearly depreciation for double declining method
I think it's because you already subtract the salvage value in the Straight-Line method before using the double declining method. So basically, you find the Straight-line method to find the depreciation value, and then you double the depreciation rate only making it from like 10% to 20%, and subtracting the salvage value again just wouldn't make any sense.
Nice video, thanks 😊
Welcome 😊
CLEAR! THANKS!
How did you come up with 1600 for year 4? thanks
Do Autos used for business have a zero salvage value?
Ie are they DB 200 down to zero in year five?
Thanks
Thanks
I hope the salvage value has to be deducted in the beginning.