The amount of the depreciation expense for the second full year of use of a fixed asset costing $100,000, with an estimated residual value of $5,000 and a useful life of 4 years, is $25,000 by the double-declining-balance method.

Question

Quizplus · Accepted Answer

Double declining balance rate = (1 / 4) × 2 = 50%
First-year depreciation = $100,000 × 50% = $50,000
 Second-year depreciation = ($100,000 - $50,000) × 50% = $25,000

The Amount of the Depreciation Expense for the Second Full