A machine costing $40,625 with a five-year life and $2,400 residual value was purchased January 2....

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A machine costing $40,625 with a five-year life and $2,400 residual value was purchased January 2....

A machine costing $40,625 with a five-year life and $2,400 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Year 1	$
Year 2	$
Year 3	$
Year 4	$
Year 5	$

business accounting

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Answer 1

Answer #1

Depreciation rate = 200/useful life = 200/5 = 40%

Year 1 (40,625*40%)	16,250
Year 2 (40,625-16,250)*40%	9750
Year 3	5850
Year 4	3510
Year 5	2106

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Answer 2

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