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Leto [7]
3 years ago
12

Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0

00. It is estimated that it will be good for 5,000 hours. Compute the depreciation expense for the second year using the double-declining-balance method of depreciation.
Mathematics
1 answer:
Effectus [21]3 years ago
6 0

Answer:

The answer is $2,640

Step-by-step explanation:

First, we determine straight line depreciation = 1/ useful life = 1/5 =20%

Second, the double-declining rate = 2 x straight line depreciation = 2 x 20% = 40%.

Third, determine the depreciation expenses for first year = (Cost of asset- accumulated depreciation) x double declining rate = (11,000-0) x 40% = $4,400

Finally, determine the depreciation expenses for second year = (Cost of asset - accumulated depreciation) x double declining rate = (11,000-4,400) x 40% = $4,400 = $2,640

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EastWind [94]
<h3>Answer:   (5/9,  -7/6)</h3>

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Explanation:

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and

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There is 3600 seconds per hour.
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