Moreno Company purchased equipment for $675,000 on January 1, 2013, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $30,000 residual value at the end of its useful life. The amount of depreciation expense recognized in the year 2015 will be

Question

Quizplus · Accepted Answer

By 2015, the equipment is fully depreciated as the double-declining-balance method accelerates depreciation. The book value at the end of 2014 is $45,000, which is the residual value, so no depreciation is recognized in 2015.

Moreno Company Purchased Equipment for $675,000 on January 1, 2013