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A company purchased office equipment for $40,000 and estimated a salvage value of $8,000 at the end of its five-year useful life.
The constant percentage to be applied against book value each year if the double-declining-balance method is used is:

a. 20%
b. 25%
c. 40%
d. 4%

Respuesta :

Samawati

Answer:

40 %

Explanation:

The double depreciation method is an accelerated depreciation on the straight-line method.

Double depreciation rate= straight-line rate x 2

in his case

Depreciation rate=( 1/useful x 100 )x2

   =(1/5x100) x 2

   =20% x2

   =40 %

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