On January 1, 2006, Foley Corporation acquired machinery at a cost of $250,000. Foley adopted the double-declining balance method of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. At the beginning of 2009, a decision was made to change to the straight-line method of depreciation for the machinery. The depreciation expense to be recorded for the machinery in 2009 is (round to the nearest dollar)
A) $25,600.
B) $18,286.
C) $22,857.
D) $25,000.

Question

Quizplus · Accepted Answer

$250,000 - [($250,000 × .2) + ($200,000 × .2) + ($160,000 × .2)] = $128,000 $128,000 ÷ 7 = $18,286.

On January 1, 2006, Foley Corporation Acquired Machinery at a Cost