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 31,2014?

Question

Quizplus · Accepted Answer

Using the double-declining-balance method, the annual depreciation rate would be 20% (100%/10 years X 2). 
For 2013, the depreciation would be $400,000 (2,000,000 x 20%), leaving a book value of $1,600,000. 
For 2014, the depreciation would be $320,000 (1,600,000 x 20%), leaving a book value of $1,280,000.

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