Double declining depreciation method (for the @CFA Level 1 ex

Double declining depreciation (for the @CFA Level 1 exam) takes you through an exam-style question on how to apply the method.

[@syedjeelani1136]

Nice Explanation!!!

[@letmeexplaincfa]

Thanks Syed!

[@Juan_77_]

Hi! Could you make a video on the topic of FSA explaining EPS? Thanks in advance!

[@letmeexplaincfa]

Yes :) That's actually the plan for this week - recording videos on basic and diluted EPS :)

[@Juan_77_]

@@letmeexplaincfa Thanks 🐐👏🏼

[@lucatintor4896]

I did the calc considering the residual value: 1. 294,000.00 2. 220,500.00 3. 147,000.00 4. 73,500.00 5. 65,000.00

[@letmeexplaincfa]

Hi, when using an accelerated depreciation method, such as double declining depreciation, you do not consider the residual value when computing the depreciation expense. You just need to make sure that net book value does not drop below residual value (something I show towards the end of the video)

[@lucatintor4896]

@@letmeexplaincfa I got it, thank you.