Answer:
The depreciation for 2006 will be $5,411 as per double declining balance method;
Explanation:
Cost of Furniture $57,617
Installation cost $14,316
Total cost $71,933
The asset purchased in 2002 and will have salvage value of $2,500 in 2017.It means useful life of furniture is 15 years
Depreciation in 1st year as per double decline method=($71,933/15)*2=$9,591
Depreciation in 2003=$62,342*(1/15)*2=$8,312
Depreciation in 2004=$62,342-$8,312=$54,029*1/15*2=$7,203
Depreciation in 2005=$54,029 -$7,203=$46,826*1/15*2=$6,243
Depreciation in 2006=$46,826-$6,243=$40,582*1/15*2=$5,411
