A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its 5-year useful life.The constant percentage to be applied against book value each year if the double-declining-balance method is used is

Question

Quizplus · Accepted Answer

The double-declining-balance method accelerates depreciation. The straight-line depreciation rate is 100% / 5 years = 20%. Double that rate is 40%, hence the correct answer is 40%.

A Company Purchased Office Equipment for $40,000 and Estimated a Salvage