A company's property records revealed the following information about one of its plant assets: CostSalvage ValuePurchase DateEstimated LifeDepreciation Method154,00015,00001/0110 yearsDouble-declining balanceCalculate the depreciation expense in Year 1 and Year 2 for the year ended December 31.Year 1 ________ Year 2 ________

What will be an ideal response?


Year 1: $154,000 x 20% = $30,800
Year 2: ($154,000 - $30,800) * 20% = $24,640
* DDB depreciation rate = 1/10 * 2 = 20%

Business

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