A company purchased a computer system at a cost of $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

Year 2 = $3,333.33

Explanation:

Giving the following information:

A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.

To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:

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

Year 1 = 2*[ (24,000 - 9,000) / 6] = 5,000

Year 2 = 2*[ (15,000 - 5,000) / 6] = 3,333.33