Question

Marlow company purchased a point of sale system on january 1 for $3,400. this system has a useful life of 10 years and a salvage value of $400. what would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Answer 1

$500 i think
hope it helps

Answer 2

The depreciation for first year end will be $680.

Solution:

Double declining balance method of depreciation is a form of depreciation where the asset of the entity is depreciated at twice rate by straight line method of depreciation.

In the above situation depreciation for the asset will be calculated as follow:

Useful life of asset: 10 years

Purchase price: $3400

$\text {Rate of depreciation} = \frac{1}{\text{Useful life of asset}} \times 100$

$= \frac{1}{10} \times 100 = 10 \%$

$\text {Depreciation rate for double declining balance method} = 10 \% \times 2 = 20 \%$

$= \ 3400 \times 20 \% = \ 680$