Machinery was purchased on January 1, 2010 for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining balance depreciation for 2011 would be

$10,929

$6,000

$10,500

$10,408

The correct answer is D.

Explanation:

Giving the following information:

Machinery was purchased on January 1, 2010, for $51,000. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000.

Annual depreciation = 2*[ (book value) / estimated life (years) ]

Year 1 = [ (51,000) / 7]*2 = 14,571.43

Year 2 = [ (51,000 - 14,571.43) / 7]*2 = 10,408