Deuce Company purchased a truck for $50,000 on January 2, 2013. The asset has an expected salvage value of $5,000 at the end of its five-year useful life. (DDB switches to straight-line in year 2015.)
-How much is the depreciation expense in 2014 if double-declining balance depreciation is used?

Question

Quizplus · Accepted Answer

In 2013, the depreciation is ($50,000 * 40%) = $20,000. The book value at the end of 2013 is $30,000. In 2014, the depreciation is ($30,000 * 40%) = $12,000.

Deuce Company Purchased a Truck for $50,000 on January 2