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17 July, 12:43

The Pack Company purchased an office building for $9,000,000. The building had an estimated useful life of 40 years and an expected salvage value of $1,000,000. Calculate the depreciation expense for the second year using the double-declining balance method.

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  1. 17 July, 16:20
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    Depreciation = Cost Price - -Salvage/Useful Life=9,00,000-1,00,000/40=8,00,000/40 = 20,000Explanation:Depreciation is 20,000
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