52800053 C Secure https Exam CH 712 Help Save ExitSubmit

528,000-53 C : Secure ! https Exam CH 7-12 Help Save & ExitSubmit 1 Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life using the e method? 25 points Multiple Choice 544 Type here to search

Solution

Answer for the above question is as $544 is calculated as follows :

Calculation of second year depreciation amount under double declining methon :

Step-1 - Cost of asset is $3,400

Step-2 - Year -1 depreciation is - $3400/10 years *2 times = $680

Step- 3 - Net Book value at the year end is $2,720

Step- 4- Year-2 depreciation calculationn is - $2,720/10years *2times = $544 -Answer