Kozy Kitchens Inc.has a new showroom that cost $400,000.It will be amortized using the declining balance method at a rate of 5%.The estimated residual value of the showroom is $50,000, and it has an expected useful life of 20 years.Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year?

Question

Quizplus · Accepted Answer

The Answer of Kozy Kitchens Inc.has a new showroom that cost $400,000.It will be amortized using the declining balance method at a rate of 5%.The estimated residual value of the showroom is $50,000, and it has an expected useful life of 20 years.Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year?