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a company purchased a computer system at a cost of $30,000. the estimated useful life is 6 years, and the estimated residual value is $9,000. assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year?



Answer :

The depreciation expense using double -declining method of computer who have life of 6 years is $9,702.

Given information,

Cost of asset = $30,000

Time period = 6 years

Residual value = $9,000

Rate of depreciation = 1/ useful life*100

                                   = 1/6*100

                                    = 16.67%

Depreciation using double -declining method = 2* cost of asset*

                                                                                *Depreciation rate

Depreciation value = 2*$30,000* 16.17% = 9,702

Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets.

Learn more about depreciation is here:

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