Using the double-declining balance method,the book value at December 31,2017,would be:
A)$14,400.
B)$24,960.
C)$27,360.
D)$25,920.

Question

Quizplus · Accepted Answer

Double-declining method calculates depreciation at twice the straight-line rate.

Depreciation Expense = (2 / Useful Life) x Beginning Book Value

For the first year, the depreciation expense would be (2/5) x $64,800 = $25,920.

To calculate the book value at December 31, 2017:

Year 1: Beginning book value = $64,800 
Depreciation expense = $25,920 
Accumulated depreciation = $25,920 
Ending book value = $38,880

Therefore, the correct answer is (D) $25,920.

Using the Double-Declining Balance Method,the Book Value at December 31,2017,would