A drilling rig purchased by Challenge Industries should last 7 years. The purchase price was $82,500. Shipping costs were $1,567. The trade-in value is $17,870. Prepare a depreciation schedule using the 150% declining balance method, then enter the accumulated depreciation at the end of year 6 as your answer. (Round the declining balance rate to 4 decimal places, and all dollar amounts to the nearest cent)

Question

Quizplus · Accepted Answer

The accumulated depreciation at the end of year 6 using the 150% declining balance method is $64,289.74.

A Drilling Rig Purchased by Challenge Industries Should Last 7