On April 30, 2019, Penny Products purchased machinery for 396,000. The useful life of this machinery is estimated at 5 years, with a $96,000 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

$396,000 x 2/5 x 8/12 = $105,600
($396,000 - $105,600) x 2/5 = $116,160

On April 30, 2019, Penny Products Purchased Machinery for 396,000