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20 September, 17:54

A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its five-year useful life.

The constant percentage to be applied against book value each year if the double-declining-balance method is used is:

a. 20%

b. 25%

c. 40%

d. 4%

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Answers (1)
  1. 20 September, 21:41
    0
    40 %

    Explanation:

    The double depreciation method is an accelerated depreciation on the straight-line method.

    Double depreciation rate = straight-line rate x 2

    in his case

    Depreciation rate = (1/useful x 100) x2

    = (1/5x100) x 2

    =20% x2

    =40 %
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