Help Save E MC Qu 103 Marlow Company purchased a point Malow

Help Save& E MC Qu. 103 Marlow Company purchased a point.. Malow Compeny purchased a point of sale system on January 1 for $5.900 This sysem has a vseul te or 5 years and a savage value of soso what would be the de expense for the second year of its usel ife using the double-decining-balance method? 3 5 command opti optioncommand

Solution

Depreciation Expense for second year is $1,416 Double Declining Balance Depreciation Method Computattion End Of Year Year Book Value Beginning of the year X Depreciable Rate = Annual Depreciation Expense Accumulated Depreciation Book Value First $    5,900 X 40% = $    2,360 $    2,360 $    3,540 Second $    3,540 X 40% = $    1,416 $    3,776 $    2,124 Under Double Declining Balance Depreciation Method Depreciation Rate under Double declining Method = (100%*1/5)*2 = 40%