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Orlov [11]
3 years ago
9

Machinery was purchased on January 1 for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value

of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar):
Business
1 answer:
tia_tia [17]3 years ago
4 0

Answer:

$10,408

Explanation:

The computation of the depreciation expense for the second year using the double-declining balance depreciation method is shown below:

First we have to determine the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 7

= 14.28%

Now the rate is double So, 28.57%

In year 1, the original cost is $51,000, so the depreciation is $14,571 after applying the 28.57% depreciation rate

And, in year 2, the ($51,000 - $14,571) × 28.57% = $10,408

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