Machinery was purchased on January 1 for 8379000 The machine

Machinery was purchased on January 1 for $83,790.00. The machinery has an estimated life of seven years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar):

Solution

Depreciation rate as per straight line method=(100/7)=14.285%(Approx)

Hence depreciation as per double decline balance method=2*Depreciation rate as per straight line method*Beginning value of each period