Question

Select the best answer for each question. Background information: On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. EventActivity Type Using the double-declining-balance method, depreciation for 2015 is approximately _____. select At December 31, 2016, using the double-declining-balance method, the book value of the machine is approximately _____. select Using the double-declining-balance method, depreciation for 2017 is approximately _____. select Slide 11

Answer 1

Answer:

On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the double-declining-balance method, depreciation for 2015 is approximately $22,000.

At December 31, 2016, using the double-declining-balance method, the book value of the machine is approximately $7,333.33.

Using the double-declining-balance method, depreciation for 2017 is approximately $666.67.

Explanation:

depreciation expense using double declining method 2015 = 2 x 1/3 x $33,000 = $22,000

depreciation expense using double declining method 2016 = 2 x 1/3 x $11,000 = $7,333.33

depreciation expense using double declining method 2017 = $3,666.67 - $3,000 = $666.67