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Concord Company purchased equipment for $909000 on January 1, 2020, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $44000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2022 will be

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Answer:

$66,323.37

Explanation:

Depreciation expense under the double declining method = adjustment factor × net book value

Adjustment factor = 2 × (1/useful life )

2 × (1/3) = 0.67

Depreciation expense in 2020 = 0.67 ×  $909000 = $609,030

Net book value =  $909000 - $609,030=$299,970

Depreciation expense in 2021 = 0.67 × $299,970 = $200,979.90

Net book value = $299,970 - $200,979.90 = $98,990.10

Depreciation expense in 2022 = 0.67 × $98,990.10 = $66,323.37

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