Answer:
Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000
Explanation:
Straight line rate= 100 % ÷ Useful Life = 100 ÷ 10= 10 %
Double Declining rate = 2 * Straight Line rate= 2 * 10= 20 %
Depreciation expense= Double declining balance rate * Beginning period book value
Depreciation expense for the first year = 20 % $ 750,000= $ 150,000
Book value for the first year = $ 750,000 - $ 150,000= $ 600,000
Depreciation expense for the 2nd year = 20 % $ 600,000= $ 120,000
Book value for the 2nd year = $ 750,000 - $ 270,000= $ 480,000
Depreciation expense for the 3rd year = 20 % $ 480,000= $ 96,000
Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000
