Question

Bina Co. purchased a vehicle on January 1st for $15,000 and estimates it will use the vehicle for eight years with a $3,000 salvage value. Using the double
declining-balance depreciation method, compute the vehicle's second year depreciation expense.
O $3,750.00
O $3,000.00
O $2,812.50
O $2,250.00

Answer 1

Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

Second year depreciation expense

First step is to calculate the first  year depreciation expense

First  year depreciation expense=15,000×(100%/8 x 2)

First  year depreciation expense=15,000 x 25%

First  year depreciation expense=3,750

Second step is to calculate Second year depreciation expense

Second year depreciation expense = (15,000-3750) x 25%

Second year depreciation expense=11,250x 25%

Second year depreciation expense  =2812.50

Therefore  Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

Learn more about Second year depreciation expense here:brainly.com/question/25806993

#SPJ1