Conley Company purchased equipment for $120,000 on January 1, 2020 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 2022 will be

Question

Quizplus · Accepted Answer

The double-declining-balance method calculates depreciation by doubling the straight-line rate. For a 5-year life, the straight-line rate is 20%, so the double rate is 40%. Depreciation for 2020 is $48,000, for 2021 is $28,800, and for 2022 is $17,280.

Conley Company Purchased Equipment for $120,000 on January 1, 2020