Question

Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be

Answer 1

Using the double-declining balance method, the book value at December 31, 2016 would be $ 46.944

Step-by-step explanation:

Depreciation rate = 1/useful life *100 = (1/10) * 100

2015 2016

Cost 73350 58.680

Rate 20% 20%

Dep 14.670 11.736

Book value 58.680 46.944