Roho Company acquired equipment on July 1,2019,for $100,000.The residual value is $20,000 and the estimated life is 5 years or 40,000 hours.Compute the depreciation expense for the years ending December 31,2019 and December 31,2020 if Roho Company uses the double-declining-balance method of depreciation.

Question

Quizplus · Accepted Answer

$100,000 × 40% × 50% = $20,000 (use 50% for half year as purchased on July 1)
($100,000 - $20,000)× 40% = $32,000

Roho Company Acquired Equipment on July 1,2019,for $100,000