Question

5. A machine costing $200,000 has salvage value of $10,000. The useful life of the
machine is 5 years. Determine the depreciation for 1st year using the double
declining balance method.
$76,000
$38,000
$40,000
$80,000​

Answer 1

Answer:

$ 38000

Explanation:

Annual Depreciation = Historical cost + salvage value/Estimated life of Assset

= 200000 - 10000/5

= 190000/5

= $ 38,000