Answer:
Annual depreciation= $420,000
Explanation:
Giving the following information:
The cost of an asset is $1,050,000, and its residual value is $210,000.
The estimated useful life of the asset is four years.
To calculate the depreciation expense using the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(1,050,000 - 210,000)/4]
Annual depreciation= $420,000
