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AlladinOne [14]
3 years ago
13

Cutter Enterprises purchased equipment for $72,000 on January 1, 2018. The equipment is expected to have a five-year life and a

residual value of $6,000. Using the double-declining balance method, depreciation for 2018 and the book value at December 31, 2019, would be:
Business
1 answer:
hram777 [196]3 years ago
3 0

Answer:

$28,800

$25920

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)  

2018 = 2/5 x 72,000 = 28,800

Book value = 72,000 - 28800 = 43,200

2019 = 2/5 x 43200 = 17280

Book value = 43200 - 17280 = 25290

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