On January 1, 2018, Beast Company acquired equipment for $360,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $60,000.
What is the amount of depreciation expense for 2020, if the company uses the double-declining-balance method of depreciation?

Question

Quizplus · Accepted Answer

$360,000 x 2/5 = $144,000
($360,000 - $144,000) x 2/5 = $86,400
($216,000 - $86,400) x 2/5 = $51,840

On January 1, 2018, Beast Company Acquired Equipment for $360,000