A company purchased factory equipment for $¥ 350,000$. It is estimated that the equipment will have a $¥ 35,000$ residual value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be

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The double-declining-balance method of depreciation results in a constant depreciation rate over the asset's useful life. The depreciation rate is twice the straight-line depreciation rate. In this case, the straight-line depreciation rate is 10% (¥35,000 / ¥350,000). Therefore, the double-declining-balance depreciation rate is 20%. The amount of annual depreciation recorded for the second year after purchase would be ¥350,000 x 20% = ¥84,000.

A Company Purchased Factory Equipment For ¥350,000¥ 350,000¥350,000 It Is Estimated That the Equipment Will Have A Is

A Company Purchased Factory Equipment For $¥ 350,000$ It Is Estimated That the Equipment Will Have A Is