Conley Company purchased equipment for $60,000 on January 1, 2012, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $3,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2014 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 2012: $60,000 * 40% = $24,000. For 2013: ($60,000 - $24,000) * 40% = $14,400. For 2014: ($60,000 - $24,000 - $14,400) * 40% = $8,640.

Conley Company Purchased Equipment for $60,000 on January 1, 2012