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13 September, 17:12

On January 1, year 1, LaRose Corp. purchases equipment for $100,000. LaRose uses the double-declining-balance method of depreciation. The asset has a 5-year service life and a $10,000 residual value. What is depreciation expense for year 1?

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  1. 13 September, 19:14
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    Depreciation Expense for the year 1 is $40,000.

    Explanation:

    The depreciation expense can be calculated using the double declining balance formula which is as under:

    Double declining depreciation expense = Cost / Useful life * 2

    By putting the values, we have:

    Double declining depreciation expense = $100,000 / 5 years * 2

    Double declining depreciation expense = $40,000

    The depreciation expense for the first year is $40,000.
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Home » Business » On January 1, year 1, LaRose Corp. purchases equipment for $100,000. LaRose uses the double-declining-balance method of depreciation. The asset has a 5-year service life and a $10,000 residual value. What is depreciation expense for year 1?
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