Double Declining Balance Depreciation Method

Подписаться 309 тыс.

Просмотров 514 тыс.

50% 1

This video explains the double-declining-balance depreciation method and illustrates how to calculate depreciation expense using the double-declining-balance method with an example.
Edspira is your source for business and financial education. To view the entire video library for free, visit www.Edspira.com
To like us on Facebook, visit / edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
/ prof.michael.mclaughlin
To follow Michael on Twitter, visit
/ prof_mclaughlin-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinkific.com
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple.com/us/podcast...
* Spotify: open.spotify.com/show/4WaNTqV...
* Website: www.edspira.com/podcast-2/
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.com/index
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.com/about/
* michaelmclaughlin.com

Опубликовано:

28 авг 2014

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 192

@agziyamuk 5 лет назад

i would've failed legit without this guy

@sharr911 4 месяца назад

Your content is criminally underrated. Thanks for all you do for so many!

@Edspira Месяц назад

Thank you so much for the kind words! I'm so glad you found the videos helpful. I hope your life and career are going well, and that you achieve all of your hopes and dreams!

@MisterMeatBall100 5 лет назад

This video way more helpful than my shitty WileyPlus textbook

@omarsarfraz8124 5 лет назад

Wiley is so shit!

@lipstickaddict4773 4 года назад

bro i hate wiley

@PixieePinkk 4 года назад

and we gotta pay for that shit

@thekingsman9296 4 года назад

I’m going to tell my kids that you were the man who helped me pass my first semester in college and therefore graduate college.

@XzMitsukozX 3 года назад

this man is a straight homie and I would’ve failed accounting without him

@daisyxgarcia 5 лет назад

I’ve spent hours trying to look for the way to solve accumulated depreciation and no articles online show how!! They only show how to find the expense. Thank you soooo much!!!

@whyanything3879 2 года назад

Thanks soooo much!!!! Your step by step instructions are EVERYTHING!!!!! No one breaks anything down anymore they just assume you know. I was about to drop out of my accounting class and this is my SECOND time taking the class. I couldn’t understand the first time NO one helped. I wish I found this first. Thank you Jesus!!!!!

@DrewTyler15 9 лет назад

Your videos are extremely helpful dude

@brandonnickel8313 3 года назад

Wow I’m 3 days away from taking my first attempt at the FAR CPA and I’ve watched so many videos of you that are really aiding my review! Thank you!!! I watched most of your inventory videos, all those were great as well. Your use of different colors as you explain concepts is much appreciated for us visual learners! And you hit a lot of cpa talk points.. not sure if that’s on purpose. I’m going to just keep on watching all your videos before I take this exam!

@Edspira 3 года назад

No problem, I hope you ace the exam!

@neidyv 7 лет назад

truthfully, for me your method has been deemed favorable! Easiest and least confusing video I've found on this subject. Thanks!!!!!

@rooseveltoverton9706 4 года назад

After an hour of trying to figure this out for my online class Here i am at 5am ! This was clutch 🙌..... now i can finally sleep..... Thank you

@missige 5 лет назад

Your explanation was awesome! I love how you made it possible for me to pull it all together. Thank you for this tutorial.

@MichaelOnRockyTop 5 лет назад

I cant begin to thank you for how much help you've given me. You are the only channel where I can find help with almost every accounting concept thus far in my degree.

@amitkharel329 5 лет назад

Someone give this guy, some type of award for helping students

@djwhitt7 8 лет назад

Thank you! This helped more than my text book. I wasn't sure what to do if after the calculated years ended with more than the salvage value, so glad you explained that.

@Edspira 8 лет назад

+Debbie Jean Whittington I'm glad the video helped! Some textbooks only serve to increase confusion :)

@misakitachibana1769 Год назад

Thank you so much for explaining this so clearly!! Taking ATCG 102 for my last semester of college and tbh this was one formula I wasn't understanding very well, now I do thanks to this video. This channel rocks!! =)

@marielsupenia4871 7 лет назад

Thank you for explaining the Double Declining method. Your video was very easy to understand and helpful.

@MyFinancialFocus 2 года назад

Super interesting. I love how creative the accounting can get with depreciation.

@critiquemydecor6801 5 лет назад

I don't know who you are, but you are helping me with accounting. I appreciate the videos.

@Ivyana5 9 лет назад

Thank you! Very clear and well explained!

@Starfish1031 4 года назад

you make accounting simple and easy to grasp!! thank you!!

@mojanviana3944 6 лет назад

This channel always help me on my accounting subjects. Ill definitely follow this

@nightthemare4742 2 года назад

Amazing! Thanks God that world has people like you. Thanks!

@debapriyaguha7594 3 года назад

legit the best explanation for DDB method i found on youtube!

@pamelalylemba9718 7 лет назад

Best video that gives good examples and explanations. Thanks!!!!

@koim1568 2 года назад

this is so much easier than whatever my textbook was telling me to do thank you so much

@alexsandoval8304 5 лет назад

Thanks for helping me prepare for my exam.

@arkinyte13 5 лет назад

Thank you so much, this’ll help me with my exam.

@coolanthems2013 9 лет назад

Awesome video man! thanks so much

@LorenaMartinez254 2 года назад

watching this minutes before i have to take my accounting exam. thank you so much for this!

@antonioromero878 Год назад

EDSPIRA the man the myth the legend

@Edspira Год назад

😂

@peytont9337 4 года назад

Thank you so much, your videos are extremely helpful!!

@mirandayoung9096 7 лет назад

This really helped me !!! Thanks!!!

@myonghoson7288 4 года назад

Perfect great! now i fully understand about Sum of the Year Digit. Thanks professor!

@hhhiiz 3 года назад

You explained it so great, thanks so much

@nicolas9628 6 лет назад

Thank you very much from France, maybe i'll pass my exams thanks to you :)

@SandrisInvestments 2 года назад

Yes, this is explained very well, thank you!

@wazhmasafi3624 5 лет назад

Thanks for uploading such a helpful video

@angelastewart-rodney8402 3 года назад

You are awesome. Your explanations are easy to follow.

@Edspira 3 года назад

Glad you like them!

@HumaZile-rq4ny 3 месяца назад

thanks sir , this lecture is so helpful to me

@almusaitirarahaman3469 3 года назад

You just saved my goodnight sleep.It was extremely helpful brother.

@Edspira 3 года назад

Glad I could help!

@georgeayoti1245 2 года назад

thank you Prof. B. Leblanc

@shanebuerster497 8 лет назад

Very Helpful, Sir! Thank You!

@Edspira 8 лет назад

+Shane Buerster Sure thing! Best wishes :)

@TheHeymanSOS 6 лет назад

Very clear tutorial, thanks a lot!

@Edspira 6 лет назад

Thanks for watching Li!

@oscarsolano21 9 лет назад

Very helpful!!!!

@theoldschooldiva374 7 лет назад

Very helpful, thank you!

@drayday3142 3 года назад

thank you so much for this. helped out alot

@nadimbenmusa4716 2 года назад

big man tng here you is a king

@darodism 5 лет назад

Great video thanks.... I had to watch this last minute and was able to understand it easily.... Wondering if I should steal you as a professor... Thanks again

@yellca 7 лет назад

This is awesome thank you!!!!!

@kyunghoonlee6732 4 года назад

Super thanks from South Korea

@teweldeokubay8326 2 года назад

I found it very helpful xxx

@davidc7660 9 лет назад

Isn't Straight line formula (50,000-4,000)/5?

@gracegirl14 8 лет назад

+David C I noticed that too.

@alijalali2276 8 лет назад

+David C He said never mind the SV for now, and plus it does not change the %. and as he mentioned it does not have to be exact the double of straight line! it could be triple!

@GotWhaleTale 8 лет назад

+gracegirl14 lol didn't bother to listen at all he said ignore the sv because if you do you assume it to be zero and there for he is right 50k/5yr, he is teaching hence why he is keeping it as simple as he can

@MADRIDESTAish 8 лет назад

+David C Yup that's what I know

@Jacob-ry3lu 4 года назад

You're right. Declining balance method ignores salvage value in the initial calculation and then adjusts the last depreciation calculation to bring the book value equal to salvage value.

@VonnaHussein 2 года назад

Thank you so much!!!

@missige 3 года назад

How did you determine the capped value of 2,480?

@evandadey2679 3 года назад

Thanks a ton this is extremely helpful!

@Edspira 3 года назад

Glad it was helpful!

@informalarefin 7 лет назад

nice tutorial. thanks

@brandoncuevas4419 6 лет назад

Preciate the help!

@hottest256 8 лет назад

you saved my life =((( thank you so much 😚

@Edspira 8 лет назад

+Thy Pham No problem! Best wishes :)

@tomallen6356 6 лет назад

Nice job. thanks.

@letran1644 8 лет назад

thank you! very helpful.

@Edspira 8 лет назад

My pleasure! Good luck with your classes!

@mdsaifulalam2752 7 лет назад

tnxxxx a lot... i was screwed up.....but u save me...

@nomanbutt595 2 года назад

Thanks man 😊😊😊

@zoesuss20 2 года назад

u just saved my life homie

@Edspira 2 года назад

😀

@sarakarimi1572 Год назад

you are the best

@loshay5638 2 года назад

Not all hero’s wear capes. Thank you!!

@user-qm9nh3js5l Месяц назад

Greatest vedio

@Phobrobian 3 года назад

Thank you

@sjoerdjansen 8 лет назад

It is possible to calculate the Double declining rate much faster and easier though! Instead of first calculating the Single declining rate and double that, you can also devide 1 / by useful life x 2. (the 1 meaning 100% and the uselife life measured in years) In your example you would get (1/ 5) x 2 x 50.000 = 20.000 which is easily typed in your calculator at once:) Thanks for your explanation though!!!

@suelviadomingos5411 2 года назад

I have a quick question, I saw online that DDB is also known as Reducing balance method, which is the same as Diminishing balance method, is this true or was I mistaken?

@Nisa-ch3bp 3 года назад

Can i ask if a question state expenses ,do the beg bv just use cost or use coa,which is cost price + other expenses

@mindsaglowin 7 лет назад

Well and good from an annual period standpoint, but most companies produce monthly or quarterly financials, for both internal and external users. How is the DDB calculation done for interim accounting periods, like monthly? I worked the table, using 60 (5 x 12) for the accounting periods, and the result was quite different.

@adultshark166 2 года назад

Imagine a free RU-vid video explains it better than a professor which I paid $20,000 per semester to attend. Down bad.

@pleasecaparzo 5 лет назад

Assuming we would have Salvage value of (0), can we apply the IRR formula and substracting the rate out of the begining value of each year ?

@ashleyenglish3382 7 лет назад

Thank you.

@mscardioqueen 3 года назад

Thank you!

@priyankamane5581 3 года назад

When rate of depreciation is given in the question for double declining method so whether to use it or calculate as you calculate

@maryumrajput7346 3 года назад

You save me sir love you so much keep doing

@miguelchavez8781 5 лет назад

Dude thank you

@koldkutz7357 Год назад

Hi! Thank u this vid rlly helped me a lot. was wondering what if the book value was actually HIGHER than the estimated salvage value? Do we do the same process or we leave it alone. Thanks! Appreciate a reply..thanks

@hariharthapa5059 3 года назад

Thank u very much

@defrte 4 года назад

So of the straight line, double declining and sum of the year digits, double declining balance is the only one where you update the cost every 12 months?

@MyWifesSon69 8 лет назад

This video really helped. My teacher does a really bad job at explaining

@MyWifesSon69 8 лет назад

Literally the entire class has problems with doing any method

@reemhesham7139 4 года назад

thank you!!

@jgb5699 4 года назад

perfect vid

@brandonwalker2777 7 лет назад

how do you do this on a vehicle that has an interest rate that is steep. Do you add that into the original cost?

@KickWins01 2 года назад

God bless 🙌

@VallenciaLisa 8 лет назад

thanks for ur explain ... very helpful ... :)

@Edspira 8 лет назад

+Vallencia Lisa Sure thing! Best wishes :)

@hodanhayaan121 4 года назад

thanks mudane

@RandySinurat 5 лет назад

Thank you for the tutorial, sir. What if the depreciation is monthly based instead of yearly depreciation?

@Jacob-ry3lu 4 года назад

Just always divide by the useful life in terms of reporting periods. If the useful life is two years but reported on a monthly basis, that's 24 reporting periods. If reported on a yearly basis it's just 2 periods.

@ethiamiehills6615 Год назад

Well explained sir, but could you please help me understand on how you're getting Deprecation expense for the last year, that's the only part I want to know

@shaheryarhameed5442 4 года назад

Simple question how will you find the double decline, when depreciation value of asset is given????

@poojasethi6752 4 года назад

the ending part is not clear can someone help with it how we took 6480 as dep exp how come it will come to 0 ? thanks in advance

@sasosaso5995 3 года назад

Thanks

@kamranohri5074 7 лет назад

On January 1, 2015, Hydri Construction acquired a small excavator for $.85,000. This device had a 4-year service life. It is expected that the equipment will be sold for $.10,000 salvage value at the end of 4 years. The company uses the double-declining balance depreciation method required; Prepare a schedule showing annual depreciation expense, accumulated depreciation

@jacyjohnson1647 5 лет назад

Doesn't salvage value need to be included in straight-line first calculation??

@loraengdahl4834 2 года назад

Thank you this was helpful BUT the the straightline example very conveniently used as an example a purchase made on January 1. So at the end of the year you get the full year. What about if the purchase was made months into the year? Do you have to account for that somehow?

@kittenmimi5326 Год назад

Just divide the depreciation value that year by the number of months? Like if one year the depreciation is 10000 then half year is 5000...

@literallynoname 2 года назад

I wish this guy was my professor since mine doesn’t know how to teach

@Edspira 2 года назад

😀

@K.E.U. Год назад

Thank you so much!!!! Imma win UIL accounting regionals for you!!!

@izuanidris7333 3 года назад

so if there was no salvage value, on the fifth year, the depreciation rate will be 100% since we have to make the fourth year book value down to zero?