Golden Dollar Company purchased a machine on January 1, 2019 for $360,000, with a 5-year life, and a $36,000 residual life.
If the company uses the double-declining balance method of depreciation, compute the depreciation expense for the year ended December 31, 2023.

Question

Quizplus · Accepted Answer

11ee7640_e1ca_c25d_90da_55a223a6cef9_TBCB1007_00 * In the fifth year that the depreciation expense is only $10,656, the amount needed to reduce the asset's book value to its estimated salvage value of $36,000. Assets are not depreciated below their estimated salvage value.

Golden Dollar Company Purchased a Machine on January 1, 2019