Eckman Company purchased equipment for $120000 on January 1 2016 and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $6000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2018 will be

Question

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In the double-declining-balance method, the depreciation rate is double the straight-line rate. The straight-line rate is 1/5 = 20%, so the double rate is 40%. For 2018, the depreciation is calculated on the book value at the start of the year: $43200 * 40% = $17280.

Eckman Company Purchased Equipment for $120000 on January 1 2016