Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its salvage value is estimated at $500. What is the depreciation expense for the second year, assuming Slovac uses the double-declining balance method of depreciation? A) $1,438. B) $1,875. C) $1,406. Your answer: C was correct! double-declining balance depreciation rate = 2 × 1/8 = ¼ or 25% first year deprecation will be $7,500 × 0.25 = $1,875 second year deprecation will be ($7,500 − $1,875) × 0.25 = $1,406
learn to use ur calc… with the depr fn.
how do you use your calc to do depr fn?
2nd depr look it up on ur manual