Respuesta :
Answer:
Depreciation Expense = $11,520
Explanation:
given data
equipment = $80,000
salvage value = $4,000
Life = 5 years
to find out
The amount of depreciation expense recognized
solution
we get first Straight line Depreciation Rate that is
Straight line Depreciation Rate = [tex]\frac{1}{life}[/tex] Â ....................1
Straight line Depreciation Rate = [tex]\frac{1}{5}[/tex]
Straight line Depreciation Rate = 20%
and
Double declining Depreciation Rate will be
Double declining Depreciation Rate = 2 × Straight line Depreciation Rate   .....................2
Double declining Depreciation Rate = 2 × 20%  = 40%
and
Depreciation Expense during 2011  = equipment ×  Double declining Depreciation Rate   ...................3
Depreciation Expense during 2011 = $80,000 × 40%  = $32000
and  Book Value at 31st December 2011
Book Value = equipment  - Depreciation Expense   ...................4
Book Value = $80,000 - $32,000
Book Value = $48,000
as that Depreciation Expense during 2012 will be
Depreciation Expense = Book Value × Double declining Depreciation Rate .....................5
Depreciation Expense = $48,000 × 40%
Depreciation Expense = $19,200
and Book Value at 31st December 2012
Book Value = Book Value 2011 - Depreciation Expense    ................6
Book Value = $48,000 - $19,200
Book Value= $28,800
and Depreciation Expense during 2013 Â will be
Depreciation Expense = Book Value × Double declining Depreciation Rate  ................7
Depreciation Expense = $28,800 × 40%
Depreciation Expense = $11,520
