Under the straight-line method, the 10-year life means the asset’s annual depreciation will be 10% of the asset’s cost. Under the double declining balance method the 10% straight line rate is doubled Accounting for Churches to 20%. However, the 20% is multiplied times the fixture’s book value at the beginning of the year instead of the fixture’s original cost. […]
Now you’re going to write it off your taxes using the double depreciation balance method. What it paid to acquire the asset — to some ultimate salvage value over a set period of years (considered the useful life of the asset). By reducing the value of that asset on the company’s books, a business can […]