Answer:
Depreciation expense Year 2= $872
Explanation:
Giving the following information:
Purchase price= $6,300
Salvage value= $850
Useful life= 10
To calculate the depreciation expense under the double-declining balance method, we need to use the following formula each year:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year1= 2*[(6,300 - 850)/10]= $1,090
Year2= 2*[(5,450 - 1,090)/10]= $872
