What Would Be the Depreciation Expense Using Double Declining-Balance to Compute

question 56

Multiple Choice

What would be the depreciation expense using double declining-balance to compute the expense for year 2 of a machine costing $30,000, when residual value is $2,000, and useful life is 3 years? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

• A) $4,444
• B) $72,000
• C) $6,667
• D) $2,000

---

Definitions:

Variable Level

Variable level refers to any quantity or factor that can change or be changed in a given environment, often used in the context of experiments, statistical modeling, or economic indicators.

Fixed Stream

A Fixed Stream is a type of investment return that provides a consistent, pre-determined series of payments over a specified period of time.

Financial Asset

Any asset that is cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of the principal at maturity.