Sure Company purchased a machine on January 1, 20X1, at a cash cost of $12,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the declining-balance method based on a 150 percent acceleration rate. What will be the depreciation expense for the second year?

Question

Quizplus · Accepted Answer

Calculation: [$12,000 - ($12,000 × 1.5 × 10%)] × 1.5 × 10% = $1,530.

Sure Company Purchased a Machine on January 1, 20X1, at a Cash