depreciation

[yasser_almansoor]

1- " If the asset is expected to have no residual value, the DB method will never fully depreciate it, so the DB method is typically changed to straight-line at some point in the asset’s life"

this sentence is quoted form schewezer, can someone explain it by a numerical example?

2- is there any difference between Accelerated depreciation and DDM?

if yes provide an example plz.

[ali.chishti]

Contact me on +923457683687 for discussion.

[SportBiker]

@yasser_almansoor

1- " If the asset is expected to have no residual value, the DB method will never fully depreciate it, so the DB method is typically changed to straight-line at some point in the asset’s life"

this sentence is quoted form schewezer, can someone explain it by a numerical example?

2- is there any difference between Accelerated depreciation and DDM?

if yes provide an example plz.

I’m on mobile at the moment, so examples in a decent format will have to wait, but:

1 - An example is outlined in this lesson

2 - A square is a specific form of rectangle. Similarly, DDM is a specific form of accelerated depreciation. The first year of DDM is 2x the value of what straight-line depreciation would be. Accelerated Depreciation could be 1.5x, 3.5x, 15x, or any other multiple (as long as it is >1.0) of the value of straight line depreciation.