Question

 Calculation of depreciation by double declining method Calculation of Depreciation Rate under DDB: (100%/Useful life ) x 2 = (100%/4 years) x 2 = 50% Calculation of depreciation expense for year 2022: Year Beginning Balance Depreciation Rate Depreciation expense (Beginning balance x Depreciation rate) Closing Balance 2021 \$55,000 50% \$27,500 \$27,500 2022 \$27,500 50% \$13,750 \$13,750 Therefore, the double-declining balance (DDB) depreciation expense in year 2022 should be \$13,750 and the book value at December 31, 2022 would be 13,750. Hence, the first option is the correct answer.

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