Eckman Company purchased equipment for $80,000 on January 1, 2013, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $4,000 residual value at the end of its useful life. The amount of depreciation expense recognized in the year 2015 will be

Question

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The double-declining-balance method involves depreciating the asset at twice the straight-line rate. The straight-line rate is 1/5 = 20%, so the double rate is 40%. For 2015, the depreciation is calculated on the book value at the beginning of the year: $28,800 * 40% = $11,520.

Eckman Company Purchased Equipment for $80,000 on January 1, 2013