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On January 1,2018,Forrest Manufacturing Company Purchased a Machine for $40,000,000

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On January 1,2018,Forrest Manufacturing Company purchased a machine for $40,000,000.The company expects to use the machine for 24,000 hours over the next six years.The estimated residual value of the machine at the end of the sixth year is $40,000.The company used the machine for 3,600 hours in 2018 and 5,000 hours in 2019.What is the depreciation expense for 2018 and 2019 if the company uses the double-declining-balance method of depreciation?


Definitions:

Interest Rate

The levy, stipulated as a percentage of the principal, made by lenders for borrowers employing their assets.

Account Balance

The amount of money present in a financial repository, such as a checking or savings account, at any given time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage rate.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals or businesses.

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