Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $45,000
Useful life= 5 years
Salvage value= $10,000
<u>To calculate the annual depreciation under the double-declining balance method, we need to use the following formula:</u>
Annual depreciation= 2*[(book value)/estimated life (years)]
<u>2018:</u>
Annual depreciation= 2[(45,000 - 10,000) / 5]
Annual depreciation= 14,000
<u>2019:</u>
Annual depreciation= 2*[(35,000 - 14,000)/5]
Annual depreciation= $8,400