Exhibit 11-2 Browning purchased a business copier for $4,500 on August 3, 2014. It has an estimated residual value of $500 and an expected service life of five years. Browning uses double-declining-balance depreciation computed to the nearest whole month.
-Refer to Exhibit 11-2. Depreciation expense for 2015 should be

Question

Quizplus · Accepted Answer

The double-declining-balance method involves doubling the straight-line depreciation rate. The straight-line rate is 1/5 = 20%, so double is 40%. For 2014, depreciation is $4,500 * 40% * 5/12 = $750. For 2015, depreciation is ($4,500 - $750) * 40% = $1,500.

Exhibit 11-2 Browning Purchased a Business Copier for $4,500 on August