Question

A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $870,000 with an estimated useful life of 8 years and an estimated salvage value of $78,300.
  
Compute the depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)

End of Period Depreciation for the Period Beginning of Depreciation Period Book Depreciation Value Rate(%) Expense Annual Period Accumulated Depreciation Book Value First Year Second Year Third Year

Answer 1

Annual period First year Second year Third Year Double Decline Depreciation Computation Beginning of Period Depreciation Book value rate Depreciation Expenses 870000 25% 217500 652500 25% 163125 489375 25% 122344 End of Period Accumulated Year end Depreciation book value 217500 652500 380625 489375 502969 367031