Final answer:
The depreciation expense for 2023 can be calculated using the double declining-balance depreciation method.
Step-by-step explanation:
The double declining-balance depreciation method is a method of depreciation where the asset's value decreases by a fixed percentage each year. In this case, the computer system has an estimated useful life of 10 years. The depreciation expense for each year is calculated by multiplying the book value of the asset at the beginning of the year by twice the straight-line depreciation rate. To calculate the depreciation expense for 2023, we need to determine the book value of the computer system at the beginning of 2023.
The book value at the beginning of each year can be calculated by subtracting the accumulated depreciation from the initial cost of the asset. The accumulated depreciation is calculated by summing up the depreciation expense for each year since the asset was acquired. Since the computer system was purchased on January 1, 2022, we need to calculate the accumulated depreciation for 2022 and subtract it from the initial cost to find the book value at the beginning of 2023.
To calculate the depreciation expense for 2023, we can use the following formula:
Depreciation Expense = Book Value at the Beginning of the Year x 2 x Straight-Line Depreciation Rate