A machine is purchased on January 1, 2018, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2019?

Total depreciation expense for 2019 is $21600. The total accumulated depreciation at the end of 2019 is $57600.

Explanation:

The double declining method is an accelerated method for depreciating an asset. The double declining balance method charges twice the rate of the straight line method. The formula for double declining method depreciation expense per year is,

Depreciation expense = 2 * SLDR * BV

Where,

Straight line rate of depreciation = 100% / 5 = 0.2 or 20%

Depreciation expense fro 2018 = 2 * 0.2 * 90000  =  $36000

Book value at the end of 2018 = 90000 - 36000 = $54000

Depreciation expense for 2019 = 2 * 0.2 * 54000  =  $21600

answer; balance sheets;