Declining Balance The cost of the asset 1000000 The salvage

Declining Balance

The cost of the asset: $10,000.00
The salvage value: $800.00
The life of the asset: 4 years

Calculate the Depreciation Expense to the Nearest One Dollar at End of Year 2.

Solution

Since No depreciation rate is given it is assumed theat depreciation is calclucated based on double decling balance method

Hence depreciation Rate =1/4*2 =50%

Depreciation Exxpense at year 2 is $3750