On January 1, 2017, a machine has a remaining book value of $5100. The residual value of the machine is $1200. The company uses the double-declining-balance method of depreciation. If 2017 is the last year for depreciation, what is Depreciation Expense for the year ending December 31, 2017?

Question

Quizplus · Accepted Answer

The double-declining-balance method calculates depreciation based on the book value at the beginning of the year. Since 2017 is the last year for depreciation, the depreciation expense will be the remaining book value minus the residual value: $5100 - $1200 = $3900.

On January 1, 2017, a Machine Has a Remaining Book