At the start of the year a company acquired new e
At the start of the year, a company acquired new equipment at a cost of €50,000, estimated to have a 3 year life and a residual value of €5,000. If the company depreciates the asset using the double declining balance method, the depreciation expense that the company will report for the third year is closest to:
A. €555.
B. €3,328.
C. €3,705.
参考解答
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2024-11-15 04:03:07
Ans:A.
Under double declining balance method, the depreciation rate would be 2 x the straight line rate of 33.3%, i.e., 66.6%, or 2/3 depreciation rate per year. However, the asset should not be depreciated below its assumed residual value in any year.
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