The Half-Year Convention Is Not Applicable for the Double-Declining Balance

question 137

True/False

The half-year convention is not applicable for the double-declining balance method of determining depreciation expense.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Depreciation

The method of distributing the expense of a physical asset throughout its life span.

Double-Declining-Balance

An accelerated method of depreciation where an asset loses value at double the rate of the straight-line depreciation method.

Residual Value

The estimated salvage value of an asset at the end of its useful life, used in calculating depreciation.