On September 30, 2018, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service.
-Depreciation for 2019, using the double-declining balance method, would be:

Question

On September 30, 2018, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service. 
-Depreciation for 2019, using the double-declining balance method, would be:

Quizplus · Accepted Answer

Depreciation for 2019 = [$200,000 - ($200,000 × 20% × 3)/12] × 20% = $38,000

On September 30, 2018, Bricker Enterprises Purchased a Machine for $200,000