A company bought a piece of equipment for $44,200 and expects to use it for eigh

Question

A company bought a piece of equipment for $44,200 and expects to use it for eight years. The company then plans to sell it for $4,400. The company has already recorded depreciation of $38,300.02. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year? (Round your answer to the nearest whole dollar amount.)

$14,200.

$1,475.

$9,950.

$1,500.

A company bought a piece of equipment for $44,200 and expects to use it for eight years. The company then plans to sell it for $4,400. The company has already recorded depreciation of $38,300.02. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year? (Round your answer to the nearest whole dollar amount.)

Explanation / Answer

D. $1,500

The company's annual depreciation expense for the upcoming year is:

= ($44,200 - $38,300.02) - $4,400

= $1,500

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