Answer:
The answers are:
- Year 1 depreciation = $12,000
- Year 2 depreciation = $9,600
Step-by-step explanation:
To calculate the depreciation expense using the double declining balance method we can do the following:
For years 1 and 2 we will use double depreciation 20% [= (100% / 10) x 2]
Year 1 depreciation = $60,000 × 20% =$12,000
Book value end of year 1 = $60,000 - $12,000 = $48,000
Year 2 depreciation = $48,000 × 20% =$9,600