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docker41 [41]
3 years ago
10

A machine with a cost of $61,800 has an estimated residual value of $4,986 and an estimated life of 5 years or 18,970 hours. Wha

t is the amount of depreciation for the second full year, using the double-declining-balance method
Business
1 answer:
Leto [7]3 years ago
8 0

Answer:

$14,832

Explanation:

Depreciation charge = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ useful life = 20 %

and

BVSLDP = Cost or Net Book Value

therefore,

1st year

Depreciation charge = 2 x 20 % x $61,800 = $24,720

2nd year

Depreciation charge =  2 x 20 % x ($61,800 - $24,720) = $14,832

conclusion

the amount of depreciation for the second full year is  $14,832

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