# 23. On April 1, 2010, a machine was purchased for \$90,000. The machine has anestimated salvage value of \$6,000 and an estimated useful life of 5 years. Thecompany applies the double-declining-balance method of depreciation and closesits books on December 31. How much is the accumulated depreciation balance onDecember 31, 2014?a. \$52,200b. \$67,320c. \$81,835d. \$82,584

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23. On April 1, 2010, a machine was purchased for \$90,000. The machine has an
estimated salvage value of \$6,000 and an estimated useful life of 5 years. The
company applies the double-declining-balance method of depreciation and closes
its books on December 31. How much is the accumulated depreciation balance on
December 31, 2014?
a. \$52,200
b. \$67,320
c. \$81,835
d. \$82,584

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Step 1

Compute the depreciation rate for double declining balance method:

Therefore, depreciation rate for double declining balance is 40%

Step 2

Compute accumulated depreciation for the 2014 under the...

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