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gordon chemicals company acquires a delivery truck at a cost of $31,000 on january 1, 2022. the truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. first year second year annual depreciation under declining-balance method $

Answer :

BHAVIKAKUKREJAGO

Under the declining-balance technique, the annual depreciation for years 1 and 2 is 15,500 and 7,750, respectively.

annual depreciation

Annual depreciation is the normal yearly rate at which a fixed asset is depreciated. If the straight-line approach is utilized, this rate remains constant from year to year. If an accelerated approach is utilized, yearly depreciation will peak early and then fall later. Depreciation is an accounting method for distributing a tangible or physical asset's cost over its useful life or life expectancy. Depreciation measures how much of an asset's value has been depleted. Depreciating assets allows businesses to generate income while expensing a portion of the asset's cost each year it is in use.

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