Answer:
Depreciation expense Year 2= $12,088
Explanation:
Giving the following information:
A machine with a cost of $54,400.00 has an estimated residual value of $4,031.00 and an estimated life of 5 years
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= [(54,400 - 4,031)/5]*2= $20,148
Year 2= [(50,369 - 20,148)/5]*2= $12,088
