Z Company purchased an asset for $24,000 on January 1,Year 1.The asset was expected to have a four-year life and a $4,000 salvage value.What is the amount of depreciation expense for Year 1 using the double-declining-balance method?
A)$2,000
B)$3,000
C)$6,000
D)$12,000

Question

Quizplus · Accepted Answer

Double-declining-balance rate = (1 ÷ 4)× 2 = 50%
Depreciation expense = Book value at beginning of year of $24,000 × 50% = $12,000

Z Company Purchased an Asset for $24,000 on January 1,Year