1. LESSON 18-5
Declining-Balance Method
of Depreciation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
CALCULATING DEPRECIATION USING THE
DOUBLE DECLINING-BALANCE METHOD
page 551
1
2
3
4
1. Calculate the double declining-balance rate.
2. Determine the annual depreciation expense.
3. Determine the ending book value.
4. Transfer the ending book value to the beginning book value for
the following year.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-5

3. CALCULATING THE LAST YEAR’S
DEPRECIATION EXPENSE
2
3
page 552
3
1
1. Transfer the ending book value from Year 4 to the beginning
book value of Year 5.
2. Subtract the salvage value from the beginning book value to
determine the depreciation expense for the last year.
3. Verify that the ending book value is equal to the salvage value.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-5

4. 4
COMPARISON OF TWO METHODS OF
DEPRECIATION
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 553
LESSON 18-5

5. 5
TERM REVIEW
page 554
 declining-balance method of depreciation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-5

6. 5
TERM REVIEW
page 554
 declining-balance method of depreciation
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-5