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 <u>$22,000</u>.
At December 31, 2016, using the double-declining-balance method, the book value of the machine is approximately <u>$7,333.33</u>.
Using the double-declining-balance method, depreciation for 2017 is approximately <u>$666.67</u>.
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
