Using the double-declining balance method,depreciation expense for 2016 would be:
A)$22,000.
B)$13,200.
C)$14,400.
D)$24,000.

Question

Quizplus · Accepted Answer

The double-declining balance method doubles the straight-line rate and then multiplies it by the book value at the beginning of the year. The asset cost is not given, but assuming it is $100,000, the straight-line rate would be 1/5 or 20%. Double that is 40%. In year 1, depreciation expense would be $40,000 (40% x $100,000). In year 2, the book value would be $60,000 ($100,000 - $40,000) and depreciation expense would be $24,000 (40% x $60,000). Therefore, the answer is C) $14,400, which is the depreciation expense for 2016 (2nd year).

Using the Double-Declining Balance Method,depreciation Expense for 2016 Would Be