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The cost of an asset is​ $1,110,000, and its residual value is​ $110,000. Estimated useful life of the asset is eight years. Calculate depreciation for the second year using the​ double-declining-balance method of depreciation.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

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Answer:

Year 2= $187,500

Explanation:

Giving the following information:

The cost of an asset is​ $1,110,000, and its residual value is​ $110,000. The estimated useful life of the asset is eight years.

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= (1,110,000 - 110,000)/8*2= 250,000

Year 2= 750,000/8*2= $187,500

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