Answer:
Depreciation expense using the straight line depreciation method:
Year 1 = $8500
Year 2 = $8500
Depreciation expense using the double declining method
Year 1 = $17,000
Year 2 = $13,600
Explanation:
Depreciation expense using the straight line depreciation method = cost of asset/ useful life
$85,000 / 10 = $8500
The depreciation expense each year would be $8,500.
Depreciation expense using the double declining method = Depreciation factor × cost of asset
Deprecation factor = 2 × (1 / useful life)
Depreciation factor = 2 / 10 = 1 / 5
Depreciation expense first year = 1/5 × 85,000 = $17,000
Net book value at the end of the first year =$85,000 - $17,000 = $68,000
Depreciation expense the second year = 1/5 × 68,000 = $13,600
I hope my answer helps you
