The cost of an asset is $1,200,000,and its residual value is $100,000.Estimated useful life of the asset is five years.Calculate depreciation for the second 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

A)Double-declining-balance depreciation = (Cost - Accumulated depreciation)× 2 × (1 / Useful life)
Depreciation for the first year = $1,200,000 × 2 × (1 / 5)= $480,000
Depreciation for the second year = ($1,200,000 - $480,000)× 2 × (1 / 5 )= $288,000

The Cost of an Asset Is $1,200,000,and Its Residual Value