Cutter enterprises purchased equipment for $72,000 on january 1, 2021. the equipment is expected to have a five-year life and a residual value of $6,000. using the double-declining-balance method, the book value at december 31, 2022, would be:

$19,200

Explanation:

Given

Cost of equipment =  $72,000 Date of purchase = January 1, 2021.

Useful period =  5 years

Residual value = $6,000

Annual depreciation using straight line method

= ($72,000 - $6,000)/5

= $66,000/5

= $13,200

Annual depreciation using the double declining method

= $13,200 * 2

= $26,400

By December 31, 2022, 2 years depreciation would have been computed on the asset, hence

Book value at December 31, 2022 =  $72,000 - 2($26,400)

                   = $72,000 - $52,800

                   = $19,200

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

answer; schedule c;