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A copy machine acquired on July 1 at a cost of $1,450 has an estimated useful life of four years. Assuming that it will have a residual value of $250, determine the depreciation for the first year by the double-declining-balance method. Round your answer to two decimal places.

Respuesta :

Answer:

Depreciation after first year will be $725

Explanation:

We have given cost of the machine = $1450

Life of the the machine = 4 year

Rate of depreciation will be equal to [tex]=\frac{100}{life\ time}=\frac{100}{4}=25[/tex] %

Now according to double-declining-balance method rate of depreciation will be double

So rate of depreciation will be = 2×25 = 50%

So depreciation after first year will be = [tex]\frac{1450\times 50}{100}=$725[/tex]

 

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