On January 1, 2019, Vandell, Inc. purchased a new machine for $96,000. Its estimated useful life is 16 years with an expected salvage value of $16,000. Assuming double-declining balance depreciation, 2020 depreciation expense is:

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Double-declining balance depreciation = (2 * straight-line depreciation rate) * book valueStraight-line depreciation rate = (cost - salvage value) / useful life= (96,000 - 16,000) / 16= 5,000 / 16= 0.3125 or 31.25%Double-declining balance depreciation rate = 2 * 31.25%= 62.5%2020 depreciation expense = 62.5% * (96,000 - 10,500)= 62.5% * 85,500= $53,437.50= $10,500