How does usage factor into calculating depreciation via the double-declining?
Thank you for your explanation of the double-declining method. I do have a question:
If I buy a work truck that uses mileage to track usage, does that usage rate factor into calculating depreciation via the double-declining method? I didn’t see it mentioned in the formula, or the explanations.
Thank you in advance for your response.
Hi Nick, if I understand your question correctly, you want to know if the mileage that you put on your work truck factor into the calculation for the double declining balance depreciation method. The answer is no. The DDB method only takes into account the useful life of the vehicle and the book value of the asset at the beginning of the year.
Crystalynn Shelton, CPA