A company purchased furniture on January 1.Its cost was $15,600,and it had a residual value of $1,600.Its useful life is determined to be 3 years.Using double-declining balance depreciation,the depreciation for year 1 to the nearest dollar will be:

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The double-declining balance method calculates depreciation by doubling the straight-line rate. The straight-line rate is 1/3 (33.33%) for 3 years. Double that is 66.67%. Year 1 depreciation is 66.67% of $15,600, which is $10,400.

A Company Purchased Furniture on January 1