Answer:
depreciation by 2020=$16,800
Explanation:
The expression for the accumulated depreciation is as follows;
accumulated depreciation=Acquisition cost-residual value
where;
acquisition cost=$70,000
residual value=$10,000
replacing;
depreciable cost=70,000-10,000=$60,000
depreciable cost=$60,000
The annual depreciation can be expressed as;
annual depreciation=depreciable cost/estimated life
where;
depreciable cost=$60,000
estimated life=4 years
replacing;
annual depreciation=60,000/4=15,000
annual depreciation=$15,000
depreciation rate=annual depreciation/depreciable cost×100
depreciable rate=(15,000/60,000)×100=25%
Since it is a double-declining depreciation rate we multiple the depreciable rate by 2;
(25%×2)=50%
Depreciation by 2019=carrying value×rate
depreciation by 2019=70,000×40%=$28,000
depreciation by 2020=(70,000-28,000)×40%=$16,800
