Ask Question
13 August, 04:36

Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $3,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount?

+1
Answers (1)
  1. 13 August, 04:55
    0
    Using the double-declining balance method, Deprecjation expense in 2019 is = $3,536.

    Step-by-step explanation:

    Purchase price of truck = $15,000

    Residual value = $3,500

    Useful life = 5 years

    Rate of Straight line depreciation method = 100%/5 = 20%

    Rate of double declining balance depreciation method = 2 * Rate of Straight line depreciation method

    = 2*20% = 40%

    Depreciation on 31st December, 2018 = $15,000*40% = $6,160

    Depreciation on 31st December, 2019 = ($15,000 - $6,160) * 40%

    = $8,840*40%

    = $3,536
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $3,500 ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers