In January 2012,Rogers Co.purchased a machine that cost $65,000.The equipment is estimated to have a 5-year life and a salvage value of $15,000.
Required:
a)Compute the amount of depreciation expense for 2012 and 2013 using the double declining balance method.
b)How does salvage value affect the calculation of depreciation by the double declining balance method?

Question

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The Answer of In January 2012,Rogers Co.purchased a machine that cost $65,000.The equipment is estimated to have a 5-year life and a salvage value of $15,000.
Required:
a)Compute the amount of depreciation expense for 2012 and 2013 using the double declining balance method.
b)How does salvage value affect the calculation of depreciation by the double declining balance method?