Question

The Quacksef Company purchased a van for $200,000 on January 1 of Year 1. The van has an estimated useful life of 20 years and an estimated salvage value of $100,000. Using double-declining-balance depreciation, compute the amount of depreciation expense to be recognized in Year 2 (the second year). Write the dollar amount of your answer.

Answer 1

Answer :- $18,000

Double Declining Rate = (1/ useful life * 2)

= ( 1/20 * 2) * 100

= 10%

Depreciation	Amount	Calculation
1st year	$20,000	200,000*10%
2nd year	$18,000	(200,000 -20,000) * 10%