Ace company purchased a machine valued at $320,000 on August 1.The equipment has an estimated useful life of five years or 2.5 million units.The equipment is estimated to have a salvage value of $8,200.Assuming the double declining balance method of depreciation,what is the amount of depreciation expense that needs to be recorded at the end of the second year if 710,000 units were produced?
A) $128,000
B)$62,360
C)$90,880
D)$88,750
E)$106,667

Question

Quizplus · Accepted Answer

320,000*.40 = 128,000X 5/12 = 53,333 2010
2011: (320,000-53,333)*40% = 106,667

Ace Company Purchased a Machine Valued at $320,000 on August