Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400.
- What would be the book value of the asset at the end of the first year of its useful life using the double-declining-balance method?

Question

Quizplus · Accepted Answer

Using the double-declining-balance method, the annual depreciation rate is 20% (100%/useful life * 2), and the first-year depreciation would be $680 (20% * $3,400). The book value at the end of the first year would be $2,720 ($3,400 - $680). Therefore, the best choice is C, $2,720.

Marlow Company Purchased a Point of Sale System on January