Answer:
$21,600
Explanation:
The expected life of the equipment is 5 years
Double-declining-balance rate = (1/5) *2 = 40%
Depreciation for 2021 = $60,000*40% = $24,000
Book Value at Dec 31, 2021 = $60,000 - $24,000
Book Value at Dec 31, 2021 = $36,000
Depreciation for 2022 = $36,000*40% = $14,400
Book Value at Dec 31, 2021 = $36,000 - $14,400
Book Value at Dec 31, 2021 = $21,600
Using the double-declining-balance method, the book value at December 31, 2022, would be $21,600.
