Sheridan Chemicals Company acquires a delivery truck at a cost of $39

truck is expected to have a salvage value of $2,300 at the end of its 4.

declining-balance depreciation rate is double the straight-line rate

first and second years under the declining-balance method.

st of $39,900 on January 1, 2022. The

nd of its 4-year useful life. Assuming the

ant-line rate, compute annual depreciation for the

First Yon

First year = $19950

Second year = $9975

Step-by-step explanation:

Depreciation rate as per straight line method = (100/5) = 20%/year

Depreciation as per double decline balance=2*Depreciation rate as per straight line method*Beginning value of each period

1st year

Beginning value=$39,900

Depreciation = (2*25%*$39900) = $19950

Ending value = ($39900-$19950) = $19950

2nd year

Beginning value=$19950

Depreciation = (2*25%*$19950) = $9975

Ending value = ($19950-$9975) = $9975

Annual depreciation

First year = $19950

Second year = $9975