Answer:
1st year: $ 622,500
2nd year: $415,000
3rd year: $207,500
Step-by-step explanation:
Step 1: Write the beginning book value of the asset
$830,000
Step 2: Determine the asset's estimated useful life
8 years
Step 3: Determine the asset's salvage value
$75,000
Step 4: Subtract the salvage value from the beginning value to get the total depreciation amount for the asset's total life.
830,000 - 75,000 = $755,000
Step 5: Calculate the annual depreciation rate
Depreciation rate = 100%/8 years = 12.5%
Step 6: Multiply the beginning value by twice the annual depreciation rate to find the depreciation expense
Depreciation expense = 830,000 x 25% = $207,500
Step 7: Subtract the depreciation expense from the beginning value to find the ending period value
Ending period value for 1st year: Beginning value - depreciation expense
830,000 - 207,500 = $ 622,500
Ending period value for 2nd year: 622,500 - 207,500 = $ 415,000
Ending period value for 3rd year: 415,000 - 207,500 = $ 207,500
!!
The depreciation expense for the first three years using the double-declining-balance method is $ 116,719.
The depreciation expense means the reduction of any machine, device, material, etc. the cost of a fixed asset.
A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of $75,000.
We know that the formula of depreciation expense is given as
[tex]\rm Depreciation\ expense = \dfrac{Fixed \ asset's \ cost - Salvage \ value}{useful \ life \ span}\\\\Depreciation\ expense = \dfrac{830000-75000}{8}\\\\Depreciation\ expense = 9437.5[/tex]
The depreciation expense for the first three years using the double-declining-balance method will be
The table is shown below.
More about the depreciation expense link is given below.
https://brainly.com/question/7873736
