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On January 1, a machine with a useful life of 4 years and a residual value of $512000 was purchased for $480000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation? $240000. $180000. $90000. $120000.

Respuesta :

Answer:

$120,000

Explanation:

The computation of the double-declining-balance method of depreciation is shown below:-

Depreciation rate

= One ÷ Useful life

= 1 ÷ 4

= 25%

The rate is double So, 50%

In year 1, the original cost is $480,000, so the depreciation is $240,000 after applying the 50% depreciation rate

And, in year 2, the $240,000 × 50% = $120,000

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