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galina1969 [7]
3 years ago
11

On January 1, 2020, Danvers Company purchased a copy machine. The machine cost $800,000, its estimated useful life is 5 years, a

nd its expected salvage value is $50,000. What is the depreciation expense for 2021 using the double-declining-balance method
Business
1 answer:
Elden [556K]3 years ago
4 0

Answer:

The answer is $192,000

Explanation:

Double-declining-balance method is doubling the rate used.

To find the rate:

100percent÷5years

= 20%.

Doubling the rate:

20% x 2

=40%

Depreciation for December 31, 2020 is:

0.4 x $800,000

=$320,000.

Net book value of the asset at the beginning of January 1, 2021 is:

$800,000 - $320,000

$480,000.

Therefore, depreciation for December 31, 2021 is:

$480,000 x 0.4

=$192,000.

Therefore depreciation for December 31, 2021 is $192,000

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