A machine is purchased on January 1, 2018, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2019?

The double declining method is an accelerated method for depreciating an asset. The double declining balance method charges twice the rate of the straight line method. The formula for double declining method depreciation expense per year is,

Depreciation expense = 2 * SLDR * BV

Where,

SLDR is the straight line depreciation rate
BV is the book value of the asset

Straight line rate of depreciation = 100% / 5 = 0.2 or 20%

Depreciation expense fro 2018 = 2 * 0.2 * 90000 = $36000

Book value at the end of 2018 = 90000 - 36000 = $54000

Depreciation expense for 2019 = 2 * 0.2 * 54000 = $21600

andromache andromache · Answer 2 · 2021-11-30T13:20:01+01:00

The total amount of depreciation to be expensed during the 2019 is $21,600.

The calculation is as follows:

First, we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 5

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $90,000, so the depreciation is $36,000 after applying the 50% depreciation rate

And, in year 2, the $(90,000 - $36,000) × 40% = $21,600

Also, the residual value is ignored in this method.

Therefore we can conclude that The total amount of depreciation to be expensed during the 2019 is $21,600.

Learn more: /brainly.com/question/6201432