Duggard Transport Company On January 1,2013,Duggard Transport Company purchased a ship for $2,000,000.It has a ten-year useful life and a residual value of $50,000.The company uses the double-declining-balance method.
What was the depreciation expense for Duggard Transport for the year ended December 31,2013?

Question

Quizplus · Accepted Answer

The double-declining-balance method calculates depreciation by doubling the straight-line rate. The straight-line rate is 1/10 = 10%. Double that rate is 20%. Depreciation for 2013 is 20% of $2,000,000, which is $400,000.

Duggard Transport Company on January 1,2013,Duggard Transport Company Purchased a Ship