Athree-year-old machine has a cost of $73,000, an estimated residual value of $6,800, and an estimated useful life of five years. the company uses double-declining-balance depreciation. calculate the net book value at the end of each year.

$29,200 for year 1

$17,520 for year 2

Explanation:

To calculate the depreciation using the double declining- balance depreciation method, the first step is to divide 100% by the number of useful life (5years)

i.e: 100%

      5         = 20%

next step: because it is a double declining-balance method, the above gotten percentage is multiplied by 2.

i.e 20% × 2 = 40%

Having gotten the double depreciation percentage to be 40%, it is then used to calculate the depreciation by calculating 40% of the cost price ($73,000). That gives us,

40% of $73,000 = 40    ×   $73,000

                            100

                         = 0.4 × $73,000

                         = $29,200

The double declining-balance depreciation of that machine is $29,200 for year 1.

For the second year, double declining-balance depreciation is

($73,000-$29,200) x 0.4 (40%)

= $43,800 x 0.4

= $17,520

The double declining-balance depreciation for the second year is $17,520

n.b: the depreciation for other years are calculated following the same steps as above. Most important;y, depreciation will stop being calculated the year after depreciation is less than the residual value.

cheers.

an important city to the south and the region's capital is c. kiev

answerup to (3) three years;