Moreno Company purchased equipment for $900000 on January 1 2016 and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $40000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2018 will be

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In the double-declining-balance method, the depreciation rate is double the straight-line rate. For a 3-year life, the straight-line rate is 1/3, so the double rate is 2/3. Depreciation for 2016 is $600,000 (2/3 of $900,000), for 2017 is $200,000 (2/3 of $300,000), and for 2018 is $60,000 (2/3 of $100,000).

Moreno Company Purchased Equipment for $900000 on January 1 2016