Shaggy Limited purchased a new van on January 1,2018.The van cost $20,000.It has an estimated life of five years and the estimated residual value is $5,000.Shaggy uses the double-declining-balance method to compute depreciation. What is the adjusted balance in the Accumulated depreciation account at the end of 2019?

Question

Quizplus · Accepted Answer

Year 1: $20,000 * (2/5)= $8,000
Year 2: $4,800 * (2/5)= 4,800
Adjusted Accumulated Depreciation after year 2 (2020)= $8,000 + $4,800 = $12,800.

Shaggy Limited Purchased a New Van on January 1,2018