Answer:
Straight line depreciation expense each year of the useful life would be $9,600
The double declining method
Deprecation expense in December 2021 = $20,800
Depreciation expense in 2022 = $12,480
Depreciation expense in 2023= $7488
Depreciation expense in 2024 = $4,492.80
Deprecation expense in 2025 = $2695.68
Explanation:
Straight line depreciation method = (Cost of asset - Salvage value) / useful life
Cost of asset = $52,000
Salvage value = $4,000
Useful life = 5
($52,000 - $4,000) / 5 = $9,600
The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset.
So the deprecation expense each year would be $9,600.
Double declining depreciation method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
2 × (1/5) = 0.4
Deprecation expense in December 2021 = 0.4 x $52,000 = $20,800
Net book value = $31,200
Depreciation expense in 2022 = 0.4 x $31,200 = $12,480
Net book value = $31,200 - $12,480 = $18,720
Depreciation expense in 2023 = 0.4 x $18,720 = $7488
Net book value = $18,720 - $7488 =$11,232
Depreciation expense in 2024 = 0.4 x $11,232 = $4,492.80
Net book value = $11,232 - $4,492.80 = $6,739. 20
Deprecation expense in 2025 = 0.4 × $6,739. 20 = $2695.68
I hope my answer helps you
