Question

A machine with a cost of $69,900.00 has an estimated residual value of $3,560.00 and an estimated life of 5 years or 16,163 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?

Select the correct answer.

$27,960.00

$13,980.00

$16,776.00

$26,536.00

Answer 1

answer; $16776.00 explanation double declining balance method depreciation %= 200%/5 40% asset book value accumulated asset carrying at beginning depreciation dep value 69,900 27960.00 27960 41,940 41,940 16776.00 44736 25,164 year