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Sagot :
Answer: $11250
Explanation:
Based on the information given in the question, the depreciation expense for the equipment for 2018 under the double-declining-balance method will be calculated thus:
Cost of Equipment = $60,000
Salvage Value = $8,000
Useful Life = 8 years
Double-declining-balance Depreciation Rate will be calculated as:
= 2 / Useful Life
= 2 / 8
= 25%
For 2017:
Beginning Book Value = $60,000
Depreciation Expense = 25% × $60,000 = $15,000
Ending Book Value = $60,000 - $15,000 = $45,000
2018:
Beginning Book Value = $45,000
Depreciation Expense = 25% × $45,000 = $11,250
Therefore, the depreciation expense for the equipment for 2018 under the double-declining-balance method is $11250.
Note that:
Ending Book Value = Beginning Book Value - Depreciation Expense
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