Answer:
The depreciation expense for the second-year of its useful life using the double-declining-balance method would be $896.
Step-by-step explanation
Determine the depreciable cost.
Depreciable cost = Acquisition cost - Salvage value
Depreciable cost = 5,600 - 420
Depreciable cost = $5180.
Determine the annual depreciation expense .
The annual depreciation expense = Depreciable cost / Useful life.
The annual depreciation expense = 5180/10.
The annual depreciation expense = $518.
Determine the depreciation rate .
Determine the depreciation rate = (The annual depreciation expense/Depreciable cost) × 100.
Determine the depreciation rate = (518/5180) × 100.
Determine the depreciation rate = 10%
But since we are applying the double-declining-balance method,we multiply the rate by 2.
So the applicable rate is 10 × 2 = 20%
Determine the depreciation expense for the second year.
Depreciation for 1st year = acquisition cost × rate.
Depreciation for 1st year = 5600 × 20%.
Depreciation for 1st year = $1120.
Depreciation for 2nd year = Asset carrying value × rate.
Depreciation for 2nd year = (5600 - 1120) × 20%
Depreciation for 2nd year = 4480 × 20%
Depreciation for 2nd year = $896.