Asked by
Verified
On January 1 a machine with a useful life of five years and a residual value of $30000 was purchased for $90000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation?
A) $21600
B) $36000
C) $28800
D) $17280
Double-Declining-Balance
The Double-Declining-Balance method is an accelerated depreciation technique which doubles the rate of straight-line depreciation, emphasizing higher depreciation costs in the early years of an asset's life.
Residual Value
The projected sale price of an asset at the termination of its operational life.
Depreciation Expense
Apportioning the expense of a concrete asset across its serviceable life.
- Calculate depreciation charges employing multiple strategies such as straight-line, double-declining balance, and units-of-activity.
- Implement learning to gauge the remaining worth of assets after enduring depreciation for a set period.
Verified Answer
Learning Objectives
- Calculate depreciation charges employing multiple strategies such as straight-line, double-declining balance, and units-of-activity.
- Implement learning to gauge the remaining worth of assets after enduring depreciation for a set period.
Related questions
Sargent Corporation Bought Equipment on January 1 2017 ...
Which of the Following Methods of Computing Depreciation Is Production ...
Farr Company Purchased a New Van for Floral Deliveries on ...
Equipment with a Cost of $400000 Has an Estimated Salvage ...
A Company Purchased Office Equipment for $40000 and Estimated a ...