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On January 1, 2022, Flowers Unlimited purchased a new delivery van.The van cost $35,000 with an estimated life of 5 years and $5,000 residual value.Double diminishing-balance depreciation will be used.
-What is the depreciation expense for calendar 2022?
A)$ 3,000
B)$ 6,000
C)$12,000
D)$14,000

Question

Use the following information for questions 
On January 1, 2022, Flowers Unlimited purchased a new delivery van.The van cost $35,000 with an estimated life of 5 years and $5,000 residual value.Double diminishing-balance depreciation will be used.
-What is the depreciation expense for calendar 2022?
A)$ 3,000
B)$ 6,000
C)$12,000
D)$14,000

Quizplus · Accepted Answer

The double declining balance depreciation for the first year is calculated as: (2 / 5 years) * ($35,000 cost - $0 accumulated depreciation), which equals 40% of $35,000, or $14,000.

Use the Following Information for Questions