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10 April, 06:28

Using the double declining depreciation method for an asset with a useful life of 7 years. What is the depreciation expense for year 2 on an asset costing $110000? Note: Round the answer to 0 decimal places (i. e. nearest dollar).

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  1. 10 April, 07:16
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    The depreciation expense for year 2 is $13,469

    Explanation:

    Computing the depreciation expense for year 1 is:

    Depreciation expense = Asset cost / Number of useful life

    = $110,000 / 7

    = $15,714.28

    Computing the depreciation expense for year 2 is as:

    Asset cost for year 2 = Asset cost - Depreciation expense for year 1

    $110,000 - $15,714.28

    = $94,285.72

    So, depreciation expense would be:

    Depreciation expense = Asset cost for year 2 / Number of useful life

    = $94,285.72 / 7

    = $13,469
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