On April 1, 2019, Lake Co. purchased machinery for $240,000. Salvage value was estimated to be $10,000. The machinery will be depreciated over ten years using the double-declining balance method.
If depreciation is computed on the basis of the nearest full month, determine the depreciation expense for the period January 1 thru December 31, 2020 on this machinery.

Question

Quizplus · Accepted Answer

$240,000 x 2/10 x 9/12 = $36,000
($240,000 - $36,000) x 2/10 = $40,800