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On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $284,000. The machine is expected to last five years and have a salvage value of $42,000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method.

Respuesta :

Answer:198,800usd by the end of 2016

119,280usd by the end of 2017

Explanation: 2016 9 months depreciation percent 30%. Then 284,000*30%=85,200usd.

2017 12 months depreciation rate 40%. Then 198800*40%=79520.

198800-79520=119280