The cost of an asset is $1,090,000,and its residual value is $300,000.Estimated useful life of the asset is eight years.Calculate depreciation for the first year using the double-declining-balance method of depreciation.(Do not round any intermediate calculations,and round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Double-declining-balance depreciation = (Cost - Accumulated depreciation) × 2 × (1 / Useful life)
Depreciation for the first year = $1,090,000 × 2 × (1 / 8) = $272,500

The Cost of an Asset Is $1,090,000,and Its Residual Value