yo yo yo yo welcome back CPA strength I don't mind I'm in my field to
date and I don't even know what it is though it's like 5 a.m. I'm pushing
around pumping I'm getting a video out on my all do a video man is what it is a
do this I am CTA strength I am the list strongest licensed CPA in the state of
Florida the whole entire states a big all state on the strongest person I'm a
strong a CPA in a whole state yeah and I also have hold on I got better than that
I have a playlist over here with this card it's the best accounting playlist
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life and everything ever your dreams come true everything you'll see unicorns
and rainbows and eat Pixy sticks and ice cream no calories all that good stuff we
are here for special order order sissy sis any Jason should go home friends I'm
not order a sissy cysts and any money I'm just this is just number 66 order
sissy sits anyways what is number 66 besides after 65 in the classic series
right it's a double declining balance depreciation example what yeah yeah
let's go get up and 65 it came from here 65 we get up we did a straight line a
straight line example and oh I know it was twelve thousand a year I believe
straight line with these same facts was twelve thousand dollars for the first
year relevant that it event twelve thousand dollars for ten years so every
single year straight line would have been twelve thousand dollars I just want
you to know that because this is the exact same facts I didn't change any of
these facts from sixty five easy video for me to write but
um I wanted to just have the same fact to show you that straight line was
twelve was twelve thousand when seven twelve thousand every single year now
with double declining balance and see how it's raining I remember double
declining balance is an accelerated depreciation method so in this one we're
figuring out what the double declining balance rate is and we're also going to
figure out what the double declining balance depreciation for the first year
is so we're just going to see like what you know what it is when we have one
hundred twenty-five thousand dollar cost let's read the example same as the other
one but equipment acquired beginning of year at a cost of one hundred
twenty-five thousand with an estimated useful life of ten years an estimated
residual value of five thousand now I circled these three items because
they're you know really they're the key ingredients to the devii odd
depreciating an item if I read if I read this out and then I hadn't that I had to
find the double declining balance rate I'm like what what would I do
well I would know from from practicing whatever that I'm going to get the the
straight-line depreciation value because that's just like the regular baseline I
mean I would need to get that first the rate and now interesting with that I
would just need to get the rate first so that's what I'm going to do and with the
rate it doesn't matter how much it cost or the residual value because that's
going to come into play because with straight-line you factor in residual
value in the appreciable costs you defector in residual value in the
depreciable cost and when you go in double declining balance you do not use
residual value when you're figuring out the depreciable cost the first of all
yep cost per sorry oh we're trying to get the we're trying
to get the double declining balance rate we're trying to get the rate so we've
got to find the we've got to find the straight line rate first and all we need
for the rate to find the figure the rate out is what the estimated useful life is
10 10 years and that's how we're going to get a rate so straight line would be
1/10 right one every year what is every single piece of that 10 is 1/10 right
one 1/10 1/10 10% or 10th you know 10% 1/10 or 10 percents right you can do or
it would be what point 1 or would be point 1/4 for the straight line so let
me get my cut let me get my calculator normally just put one
Ziggy's 1/10 point one point one is a straight line right point one or you
just elect 10% of tenth right I'm going to say or or 10% now - now what is the
name the name indicates double double declining balance you double that up
what's the double declining balance rate well this is the singles right this
thing and think of like a yeah you know on fact is I'm like think of a single
Berger single burgers point one what's the double burger you know to another
patty double it you know so the double is 20% okay 20% Nana wants to know so
that's that's the answer to number a here the number time balance rate is 20%
and notice we all we used to get that is how many years useful life now it's
going to our our second question or be here double the time balance
education for the first year how are we going to figure out how we're going to
figure that out pool how are we going to figure that out
well you multiply the the book value the book value without written without using
the visual value multiply it multiply that by the rate both value times rate
is how you get the depreciation for the per year and double declining balance so
it one hundred and twenty five thousand dollars is is the book value because we
that's what our cost was we're not we don't use residual value with double
declining balance because the very end we need to have that saved because
that's supposedly what the book value is going to be when we salvage it or sell
it or all the slow the double declining balance for the first year being mmm
it's getting a little hot in the office won't finish this up the let's go so if
you $125,000 that's the book value because I has been appreciated or
anything yet and we don't use a residual value so one hundred twenty-five
thousand dollars one hundred and twenty five thousand dollars times twenty
percent twenty percent
4.2 right what is that equal I mean in my head I say that's a 25 25 thousand
and I think it is because I would do a 100 125 thousand it was 10% of that
would be 12,500 double that to 25 thousand hi Caitlin that was way out I
was way out of the picture for that long car her right guys you go 125 thousand
times point two equals twenty-five thousand so that is our answer twenty
five thousand for Part B now I want you to this was our first year of
depreciation and double declining balance twenty five thousand that's our
depreciation expense and that's our depreciation expense for our first year
and double declining balance now if you notice it was twelve twelve thousand
gave me 12 thousand every year for straight line for ten years so you more
than doubled about doubled it I'm double declining balance so that makes sense
we're going to get out of here for now we're just haven't we're having too much
fun grow on this channel putting out
accounting videos and doing like some eating videos and just other videos and
just like I can't wait to see you guys in the next video so until then we had
to stay positive and let's let's let's try to just reach for our goals and all
that good stuff deuces
I'm getting pulled things go