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Fiesta28 [93]
3 years ago
10

Bramble Company purchased a new van for floral deliveries on January 1, 2018. The van cost $66000 with an estimated life of 5 ye

ars and $13500 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2019
Business
1 answer:
fgiga [73]3 years ago
6 0

Answer:

$42,240

Explanation:

The computation of the balance of the Accumulated Depreciation account at the end of 2019 is as follows;

But before that the depreciation rate is

= 1 ÷ 5 × 2

= 40%

For the first year, the depreciation expense is

= $66,000 × 40%

= $26,400

Now for the 2019, the depreciation expense is

= ($66,000  - $26,400) × 40%

= $15,840

Now the accumulated depreciation is

= $26,400 + $15,840

= $42,240

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