Conley Company purchased equipment for $120,000 on January 1, 2015, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $6,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2017 will be

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The double-declining-balance method calculates depreciation by doubling the straight-line rate. For a 5-year life, the straight-line rate is 20%, so the double rate is 40%. Depreciation for 2015 is $48,000 (40% of $120,000), for 2016 is $28,800 (40% of $72,000), and for 2017 is $17,280 (40% of $43,200).

Conley Company Purchased Equipment for $120,000 on January 1, 2015