Final answer:
The total amount of depreciation expensed during 2017 under the double-declining balance method is $20,625, which is calculated based on 25% of the book value of the machine at the beginning of 2017.
Step-by-step explanation:
The question involves calculating the amount of depreciation expense for the year 2017 for a machine under the double-declining balance method of depreciation. With an initial cost of $110,000, a useful life of 8 years, and a residual value of $15,000, one must first determine the straight-line depreciation rate, which is then doubled to apply this accelerated method.
The straight-line depreciation rate is 1/8, or 12.5% per year, as the useful life is 8 years. Therefore, the double-declining balance rate is 25% per year.
In the first year (2016), the depreciation would be 25% of $110,000 which is $27,500. This would leave a book value of $82,500 ($110,000 - $27,500) at the beginning of 2017. The depreciation for 2017 would then be 25% of $82,500, which is $20,625.