Afleet of refrigerated delivery trucks is acquired on january 5, 2017, at a cost of $830,000 with an estimated useful life of eight years and an estimated salvage value of $75,000. compute the depreciation expense for the first three years using the double-declining-balance method

1st year: $ 622,500

2nd year: $415,000

3rd year: $207,500

Step-by-step explanation:

Step 1: Write the beginning book value of the asset

$830,000

Step 2: Determine the asset's estimated useful life

8 years

Step 3: Determine the asset's salvage value

$75,000

Step 4: Subtract the salvage value from the beginning value to get the total depreciation amount for the asset's total life.

830,000 - 75,000 = $755,000

Step 5: Calculate the annual depreciation rate

Depreciation rate = 100%/8 years = 12.5%

Step 6: Multiply the beginning value by twice the annual depreciation rate to find the depreciation expense

Depreciation expense = 830,000 x 25% = $207,500

Step 7: Subtract the depreciation expense from the beginning value to find the ending period value

Ending period value for 1st year: Beginning value - depreciation expense

830,000 - 207,500 = $ 622,500

Ending period value for 2nd year: 622,500 - 207,500 = $ 415,000

Ending period value for 3rd year: 415,000 - 207,500 = $ 207,500

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95.03 is the answer. hope this !