Question

A copy machine acquired on July 1 at a cost of $1,450 has an estimated useful life of four years. Assuming that it will have a residual value of $250, determine the depreciation for the first year by the double-declining-balance method. Round your answer to two decimal places.

Answer 1

Depreciation after first year will be $725

Step-by-step explanation:

We have given cost of the machine = $1450

Life of the the machine = 4 year

Rate of depreciation will be equal to
`=(100)/(life\ time)=(100)/(4)=25` %

Now according to double-declining-balance method rate of depreciation will be double

So rate of depreciation will be = 2×25 = 50%

So depreciation after first year will be =
`(1450* 50)/(100)=$725`