Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Marlow Company purchased a point of sale system on January 1 for $6,500. This system has a useful life of 5 years and a salvage value of $950. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method

Sagot :

Answer:

$1,560

Explanation:

The computation of the depreciation expense for the second year of its useful life is shown below:

First depreciation rate is

= 1 ÷ 5 ×2

= 40%

Now the depreciation expense for one year is

= 40% of $6,500

= $2,600

Now the depreciation expense for the second year is

= ($6,500 - $2,600) ×40%

= $1,560

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.