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Using the double-declining balance method, depreciation for 2023 is approximately multiple choice $3,667 $2,445 $3,000 $667

User Haagel
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Final answer:

The depreciation for 2023 using the double-declining balance method is approximately $3,667.

Step-by-step explanation:

The double-declining balance method is a depreciation method that allows for a higher depreciation expense in the early years of an asset's life. To calculate depreciation using this method, you need to know the asset's cost, estimated useful life, and salvage value. The formula for annual depreciation using the double-declining balance method is:

Annual Depreciation = (2 / Useful Life) x Book Value

Given that the depreciation for 2023 is approximately $3,667, we can use this formula to calculate the book value. Let's assume the asset's cost is $10,000, the useful life is 5 years, and the salvage value is $2,000:

Book Value for 2023 = Cost - Accumulated Depreciation

Accumulated Depreciation for 2023 = Annual Depreciation x Number of Years

Plugging in the values:

Annual Depreciation = (2 / 5) x (10,000 - Accumulated Depreciation)

3,667 = (2 / 5) x (10,000 - Accumulated Depreciation)

Solving for Accumulated Depreciation:

Accumulated Depreciation = 10,000 - (3,667 x (5 / 2))

Accumulated Depreciation = 10,000 - 9,167

Accumulated Depreciation = 833

Therefore, the depreciation for 2023 is approximately $3,667.

User MordechayS
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