Answer:
Accumulated depreciation= $7,272
Explanation:
Giving the following information:
Purchased: January 1, 2014, at a cash cost of $23,000.
The estimated useful life is 10 years.
The estimated residual value is $2,800.
Under the double-declining balance, we need to use the following formula for each year:
Annual depreciation= 2*[(book value)/estimated life (years)]
2014= [(23,000 - 2,800)/10]*2= 4,040
2015= [(20,200 - 4,040)/10]*2= 3,232
Accumulated depreciation= $7,272
