g A machine with a cost of $54,400.00 has an estimated residual value of $4,031.00 and an estimated life of 5 years or 18,293 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?

Depreciation expense Year 2 = $12,088

Explanation:

Giving the following information:

A machine with a cost of $54,400.00 has an estimated residual value of $4,031.00 and an estimated life of 5 years

To calculate the depreciation expense under the double-declining balance, we need to use the following formula:

Annual depreciation = 2*[ (book value) / estimated life (years) ]

Year 1 = [ (54,400 - 4,031) / 5]*2 = $20,148

Year 2 = [ (50,369 - 20,148) / 5]*2 = $12,088