Question

A company bought a piece of equipment for $45,200 and expects to use it for eight years. The company then plans to sell it for $5,000. The company has already recorded depreciation of $39,166.53. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year

Answer 1

$1,033,47

Step-by-step explanation:

Calculation for the company's annual depreciation expense for the upcoming year using the double-declining-balance method

Using this formula

Depreciation expense = Beginning book value − Accumulated depreciation − Residual value

Let plug in the formula

Depreciation expense = 45,200 - $39,166.53-5,000

Depreciation expense =$1,033.47

Therefore the Depreciation expense will be $1,033.47