Using the double-declining balance method,depreciation for 2016 and the book value at December 31,2016,would be:
A)$26,400 and $45,600.
B)$28,800 and $43,200.
C)$28,800 and $37,200.
D)$26,400 and $36,600.

Question

Quizplus · Accepted Answer

Assuming a cost of $144,000 and a useful life of 5 years, the annual depreciation rate using the double-declining balance method would be 40% (100%/useful life * 2). So, for 2016, the depreciation expense would be $57,600 ($144,000 * 40%). The book value at the end of 2016 would be $86,400 ($144,000 - $57,600). Therefore, the correct answer is B, which shows 2016 depreciation of $28,800 ($57,600/2) and a book value of $43,200 ($86,400/2).

Using the Double-Declining Balance Method,depreciation for 2016 and the Book