Question 10.4: Double-Declining-Balance Depreciation Equipment acquired at ......

Financial Accounting [EXP-43430]

Double-Declining-Balance Depreciation

Equipment acquired at the beginning of the year at a cost of $125,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. Determine (a) the double-declining-balance rate and (b) the double-declining-balance depreciation for the first year.

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a. 20% [(1/10) × 2]

b. $25,000 ($125,000 × 20%)

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