The depreciation expense using the straight-line method would have been $44,700
What is the double-declining balance method?
It is a method of depreciating assets where the amount charged each year as depreciation is twice that of the depreciation expense that would have been if the straight-line depreciation method was used.
Depreciation rate using double declining method=100%/useful life*2
the "2" in the formula means double-declining, and the rate of depreciation is 200% of the straight-line method
useful life=assuming it is 5 years
Depreciation rate using double declining method=100%/5*2=40%
What is a straight-line method of depreciation?
It is the method where the depreciation expense per year is the asset cost minus residual value divided by the asset's useful life.
If the depreciation expense using the double-declining balance method in 2020 was $89,400, it means the depreciation expense under the straight-line method would have been half of that(i.e.100%/200%)
depreciation expense(straight-line method)=$89,400*100%/200%
depreciation expense(straight-line method)=$44,700
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