On April 30, 2019, Macy Products purchased machinery for $132,000. The useful life of this machinery is estimated at 5 years, with a $32,000 residual value. The company uses the double-declining-balance method.
Depreciation expense for the fiscal year ending on December 31, 2020 will be:

Question

Quizplus · Accepted Answer

$132,000 x 2/5 x 8/12 = $35,200
($132,000 - $35,200) x 2/5 = $38,720

On April 30, 2019, Macy Products Purchased Machinery for $132,000