Use the following information for questions 45-46.
Picton Farms purchased some equipment on January 1, 2017 for $12,600. The equipment has an estimated useful life of 10 years and an estimated residual value of $1,200. The company uses double-declining-balance depreciation.
-Depreciation expense for 2017 would be
A) $1,140.
B) $1,260.
C) $2,280.
D) $2,520.

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 $12,600, which equals $2,520.

Use the Following Information for Questions 45-46