Homework Answers
Depreciation rate under double declining balance method = Straight line depreciation rate * 2
Straight line depreciation rate = (100 / 5 years)
= 20%
Depreciation rate under double declining balance method = 2 * 20%
= 40%
2018 depreciation expense = Cost * rate
= 10,000 * 40%
= $4,000
Book value at the end of year 2018 = ($10,000 - $4,000)
= $6,000
2019 depreciation expense = $6,000 * 40%
= $2,400
$2,400 is the correct answer.
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