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29 June, 03:11

Kansas Enterprises purchased equipment for $79,500 on January 1, 2015. The equipment is expected to have a ten-year life, with a residual value of $6,150 at the end of ten years.

Using the double-declining balance method, the book value at December 31, 2016 would be

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  1. 29 June, 04:24
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    Using the double-declining balance method, the book value at December 31, 2016 would be $ 46.944

    Explanation:

    Depreciation rate = 1/useful life * 100 = (1/10) * 100

    2015 2016

    Cost 73350 58.680

    Rate 20% 20%

    Dep 14.670 11.736

    Book value 58.680 46.944
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