Rainier Corporation purchased five automobiles at the beginning of 2012 for a total cost of $125,000. Rainier Corporation estimates the total residual value of the five automobiles to be $25,000 and their estimated useful life at 5 years. Use the double declining balance method to calculate the depreciation expense for 2012 and 2013.

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The Answer of Rainier Corporation purchased five automobiles at the beginning of 2012 for a total cost of $125,000. Rainier Corporation estimates the total residual value of the five automobiles to be $25,000 and their estimated useful life at 5 years. Use the double declining balance method to calculate the depreciation expense for 2012 and 2013.

Rainier Corporation Purchased Five Automobiles at the Beginning of 2012