On January 2,2019,Helmkamp Company purchased a $30,000 machine.It had an estimated useful life of 5 years and a residual value of $3,000.What is the amount of depreciation expense for 2020,the second year of the asset's life,using the double declining-balance method? (Round intermediary calculations to two decimal places and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

$30,000 × 40% = $12,000
($30,000 - $12,000)× 40% = $7,200

On January 2,2019,Helmkamp Company Purchased a $30,000 Machine