Eckman Company purchased equipment for $120,000 on January 1, 2020, and will use the double-declining-balance method of depreciation.It is estimated that the equipment will have a 5-year life and a $6,000 salvage value at the end of its useful life.The amount of depreciation expense recognized in the year 2022 will be

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In the double-declining-balance method, the depreciation rate is double the straight-line rate. The straight-line rate is 1/5 = 20%, so the double rate is 40%. Depreciation for 2020: $120,000 * 40% = $48,000. For 2021: ($120,000 - $48,000) * 40% = $28,800. For 2022: ($120,000 - $48,000 - $28,800) * 40% = $17,280.

Eckman Company Purchased Equipment for $120,000 on January 1, 2020