Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2022. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Year 1: 15.500
Year 2: ?

Sagot :

Answer:

15,500 and 7,750

Explanation:

The annual depreciation for year 1 and year 2 under the declining-balance method is 15,500 and 7,750 respectively.


How do you compute the Annual depreciation rate under the declining-balance method?

[tex]\text{Rate}= (31,000-4000)\\=29,000 \\\text{Rate}=29,000/4\\=7,250\\\text{Rate}=7,250/29,000\\=0.25\\ \text{Rate}=0.25 \text{ x }2\\= 50 \text{percent or} 0.50\\\text{Year 1} = 31,000 \text{ x }0.50\\\text{Year 1} =$15,500\\\text{Year 2} = (31,000 - $15,500)*0.50\\\text{Year 2} =$ 7,750[/tex]

For more information about the depreciation method, refer below

https://brainly.com/question/13542944

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.