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A piece of equipment was acquired on January 1, 2018, at a cost of $36,000, with...

A piece of equipment was acquired on January 1, 2018, at a cost of $36,000, with an estimated residual value of $5,000 and an estimated useful life of six years. The company uses the double-declining-balance method. What is its book value at December 31, 2019?

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Answer #1
Cost on 1-1-2018 36000
Useful life = 6
Rate per year =2/6 33.33%
Depreciation in year 2018 = $         12,000.00
36000*33.33%
Depreciation in year 2019= $           4,666.67
(36000-12000)*33.33%
Book value on Dec -2019 = $         19,333.33
36000-12000-4666.67
Ans = $         19,333.33
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