Answer:
The balance of the Accumulated Depreciation account at the end of 2021 is $26,880
Explanation:
Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.
Depreciable cost = Total asset cost - salvage value = $56,000-$14,000 = $42,000
Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.
Depreciation expense for 2020 = 40% x $42,000 = $16,800
At the beginning 2021, the Depreciable cost's book value is $42,000-$16,800 = $25,200
Depreciation expense for 2021 = 40% x $25,200 = $10,080
The balance of the Accumulated Depreciation account at the end of 2021 = $16,800 + $10,080 = $26,880
