Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400.
-What would be the depreciation expense for the first year of its useful life using the double-declining-balance method?

Question

Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. 
-What would be the depreciation expense for the first year of its useful life using the double-declining-balance method?

Quizplus · Accepted Answer

The double-declining-balance method calculates depreciation by doubling the straight-line rate. The straight-line rate is 1/10 = 10%. Double that is 20%. The first year's depreciation is 20% of $3,400, which is $680.

Marlow Company Purchased a Point of Sale System on January