Question

Bramble Corp. purchased a machine for $65600 on July 1, 2020. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5200. Depreciation for 2020 to the closest dollar is:________a. $16650 b. $32300 c. $14569 d. $18325

Answer 1

Answer:

$16,400

Explanation:

Depreciation for 2020 is calculated as;

= (Cost - Nill value) × 50% × 6/12[July to December)

Given that ;

Cost = $65,600

Depreciation = ($65,600 - 0) × 0.5 × 6/12

Depreciation = $16,400

Therefore, depreciation for 2020 is $16,400.