Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

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.
Year 1: 15.500
Year 2: ?

Sagot :

Answer:

15,500 and 7,750

Explanation:

The annual depreciation for year 1 and year 2 under the declining-balance method is 15,500 and 7,750 respectively.


How do you compute the Annual depreciation rate under the declining-balance method?

[tex]\text{Rate}= (31,000-4000)\\=29,000 \\\text{Rate}=29,000/4\\=7,250\\\text{Rate}=7,250/29,000\\=0.25\\ \text{Rate}=0.25 \text{ x }2\\= 50 \text{percent or} 0.50\\\text{Year 1} = 31,000 \text{ x }0.50\\\text{Year 1} =$15,500\\\text{Year 2} = (31,000 - $15,500)*0.50\\\text{Year 2} =$ 7,750[/tex]

For more information about the depreciation method, refer below

https://brainly.com/question/13542944

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.