J.Long purchased computer equipment for $7,000 on January 1,2015.It has a residual value of $700 with a useful life of 5 years.After the appropriate adjusting entry is made,the book value of the asset on December 31,2015,under the double declining-balance method,is:

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The double declining-balance method involves depreciating the asset at twice the straight-line rate. The straight-line rate would be 1/5 or 20%. Double that and we get 40%. Therefore, the depreciation expense for 2015 would be $7,000 x 40% = $2,800. After the adjusting entry, the accumulated depreciation account would have a balance of $2,800. To find the book value, we subtract accumulated depreciation from the original cost: $7,000 - $2,800 = $4,200. Therefore, the book value of the asset on December 31, 2015, is $4,200.

JLong Purchased Computer Equipment for $7,000 on January 1,2015