Answer:
Bricker Enterprises
Depreciation for 2021, using the double-declining-balance method, would be:
= $9,200.
Explanation:
a) Data and Calculations:
September 30, 2021:
Cost of purchased machine = $203,000
Estimated residual value = 19,000
Depreciable amount = $184,000
Estimated service life = 10 years
Depreciation rate using the double-declining-balance method = 20% (100/10 * 2)
Depreciation expense for the first year based on the double-declining-balance method:
= $36,800 ($184,000 * 20%)
Prorated depreciation expense for 2021 = $9,200 (($184,000 * 20%) * 3/12))
