Homework Answers
Correct Option is C - $10,000
The Amount Of depreciation in 1st year by the double-declining balance method is $10,000.
Explanation
Cost of the asset = $ 25,000
Salvage Value = $ 5,000
The useful life of the asset = 5 years
Straight Line depreciation rate = 1/useful life *100 = (1/5) * 100 = 20%
Double-declining balance formula = 2 xSDLP x BV
Year 1 Depreciation = 2X 20%x $25,000 = $10,000
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