Answer:
The accumulated depreciation balance at December 31, 20X5 should be: $91,800
Explanation:
Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.
Depreciable cost = Total asset cost - salvage value = $200,000 - $20,000 = $180,000
Depreciation was computed by the 150% declining balance method. Depreciation rate is 30%.
Depreciation for the year of 20X4 = 30% x $180,000 = $54,000
At the beginning of the second year, the Depreciable cost's book value = $180,000 - $54,000 = $126,000
Depreciation for the year of 20X5 = 30% x $126,000 = $37,800
The accumulated depreciation balance at December 31, 20X5 = $54,000 + $37,800 = $91,800
