Depreciation for 2009, using double-declining balance, would be:
A)$40,000.
B)$10,000.
C)$36,000.
D)$ 9,000.$200,000 20% 3/12 = $10,000

Question

Quizplus · Accepted Answer

Double-declining balance method doubles the straight-line depreciation rate and then applies it to the initial book value of the asset. In this case, the initial book value of the asset is $200,000 and the straight-line depreciation rate is 20%, which means the depreciation expense for one year would be $40,000. However, since the asset was put into use only for 3 months, the depreciation for 2009 would be $10,000 (i.e., 3/12 x $40,000). Therefore, the best choice is B.

Depreciation for 2009, Using Double-Declining Balance, Would Be