Answer:
1. $8,000
2. $20,000
3. $16,000
Step-by-step explanation:
The computation is shown below using the double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 6
= 0.16667
Now the rate is double So, 0.3333%
In year 1, the original cost is $36,000, so the depreciation is $12,000 after applying the 33.33% depreciation rate
And, in year 2, the ($36,000 - $12,000) × 33.33% = $8,000
1. So the depreciation expense is $8,000
2. Accumulated depreciation is
= $12,000 + $8,000
= $20,000
3. And, the book value is
= $36,000 - $20,000
= $16,000