Slotkin Products purchased a machine for $39,000 on July 1, 2014. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $3,000. Depreciation for 2014 is

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The double-declining balance method depreciates an asset at twice the rate of straight-line depreciation. First, calculate the straight-line rate as 1/8 (since it's over 8 years), which is 12.5%. Double that for the double-declining balance method to get 25%. For the first half-year (since it was purchased on July 1 and the year ends December 31), apply 25% to the cost minus salvage value ($39,000 - $3,000 = $36,000), which is $9,000 annually. For half a year, it's $9,000/2 = $4,875.

Slotkin Products Purchased a Machine for $39,000 on July 1