Eckman Company purchased equipment for $120,000 on January 1, 2014, 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 2016 will be

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The double-declining-balance method calculates depreciation by doubling the straight-line rate. The straight-line rate is 1/5 = 20%, so the double rate is 40%. For 2014, depreciation is $120,000 * 40% = $48,000. For 2015, it's ($120,000 - $48,000) * 40% = $28,800. For 2016, it's ($120,000 - $48,000 - $28,800) * 40% = $17,280.

Eckman Company Purchased Equipment for $120,000 on January 1, 2014