Marlow Company purchased a point of sale system on January 1 for $3,400. This system has...

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Marlow Company purchased a point of sale system on January 1 for $3,400. This system has...

Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the accumulated depreciation at the end of the second year of its useful life using the double-declining-balance method?

2,176

$600

$1,224

$1,200

$544

business accounting

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Answer 1

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Answer #1

Double declining rate = 200/useful life = 200/10 = 20%

Depreciation for first year = 3,400*20% = 680

Depreciation for Second year = (3400-680)*20% = 544

Accumulated Depreciation = 680 + 544 = 1224

Option C is the answer

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Answer 2

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