Morten Co. ,which uses the double-declining-balance method of depreciation,purchased a new machine on January 1,2018.The machine cost $160,000,had an estimated useful life of 8 years and $20,000 residual value at the end of its useful life. What is the depreciation expense for 2018?
A)$20,000
B)$40,000
C)$10,000
D)$30,000

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost − Accumulated depreciation)× (2 ÷ Useful Life)
= ($160,000 − $0)× (2 ÷ 8)= $40,000

Morten Co ,Which Uses the Double-Declining-Balance Method of Depreciation,purchased a New