Depreciation is a process to allocate the cost of long -life assets to each period's income statement and adjusts the value of the assets on the balance sheet.
1. Explain how the double-declining-balance method is computed.
2. Provide an example of how this method could be used on the new delivery truck purchased for $300,000 to be used for 4 years with a salvage value of $5,000 for year one only.