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The second year’s depreciation for this equipment using the double-declining balance method is
$8,500 A
B $13,600
C $16,000
D $20,000
16,000$
First Year8500
Second Year7,777
Total Around16000$
year 1: 8500
year 2: 7,777777777
T°: 16000
option d $0 will be the amount of depreciation for the second year on the basis of double declining balance method
The second year’s depreciation for this equipment using the double-declining balance method is
$8,500 A
The Correct result is Option C Amount USD16000
So It's "C"
but after10 years remaining value is not15000
Double means straight line method percentage multiplied by2 . Here10 years =10% *2=20%
And here we will ignore the salvage value . So first year is100,000 *20% = $20,000 as expense .
And second year we will take the book value of the equipment which is80,000 (100,000 -20,000 ) *20% = 16,000 .
Answer C is the right option
But we have to note that at the end of useful life the book value should be equal $15,000 as an ending balance of the asset .
According to double- declining balance method .
A.8500$r this count as simple=85000/10=8500$