PE 10-4A Double-declining-balance depreciation

Equipment acquired at the beginning of the year at a cost of $190,000 has an estimated residual value of $30,000 and an estimated useful life of eight years. Determine (a) the double-declining-balance rate and (b) the double-declining-balance depreciation for the first year.

Answer:
a. 25% = [(1/8) × 2]
b. $47,500 ($190,000 × 25%) 

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