Use the following information for questions 43-44.
Jeremiah Co. purchased a machine on January 1, 2017 for $22,500. The machine had an estimated useful life of 10 years and an estimated residual value of $2,500. The company uses double-declining-balance depreciation.
-What will be the depreciation expense for 2017?
A) $4,500
B) $3,500
C) $2,250
D) $2,000

Question

Quizplus · Accepted Answer

The double-declining-balance method calculates depreciation by doubling the straight-line rate. The straight-line rate is 1/10 = 10%. Double that rate is 20%. Depreciation for 2017 is 20% of $22,500, which equals $4,500.

Use the Following Information for Questions 43-44