On January 1, 20X3, a machine with a useful life of five years and a residual value of $2,500 was purchased for $25,000. Using the double-declining-balance method, the depreciation expense for the year ending December 31, 20X4 would be
A) $10,000
B) $9,000
C) $6,000
D) $5,400

Question

Quizplus · Accepted Answer

Calculation: [$25,000 × (2 ÷ 5)] = $10,000 First year [($25,000 - $10,000) × (2 ÷ 5)] = $6,000 Second year .

On January 1, 20X3, a Machine with a Useful Life