Eckman Company purchased equipment for $40,000 on January 1, 2009, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $2,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2011 will be

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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 2009, depreciation is $40,000 * 40% = $16,000. For 2010, depreciation is ($40,000 - $16,000) * 40% = $9,600. For 2011, depreciation is ($40,000 - $16,000 - $9,600) * 40% = $5,760.

Eckman Company Purchased Equipment for $40,000 on January 1, 2009