On September 25, 2019, Panther Corp. purchased machinery for $336,000. Residual value was estimated to be $15,000. The machinery will be depreciated over eight years using the double-declining-balance method. If depreciation is calculated on the basis of the nearest full month, Panther should record depreciation expense for calendar 2020 on this machinery of

Question

Quizplus · Accepted Answer

The double-declining-balance method results in depreciation expense of $84,000 for the first year ($336,000 x 25% x 10/12). Depreciation expense for the second year is $63,000 ($336,000 x 25% x 8/12).