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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Asked Mar 8, 2019
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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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Expert Answer

Step 1

Compute the depreciation rate for double declining balance method:

 

Therefore, depreciation rate for double declining balance is 40%

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Step 2

Compute accumulated depreciation for the 2014 under the...

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