0 Inv WileyPLUS uS I Help I Contact Us I Log Out Weygandt, Financial Accounting,

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0 Inv WileyPLUS uS I Help I Contact Us I Log Out Weygandt, Financial Accounting, 10e FINANCIAL ACCT. (ACCT298) CALCULATOR STANDARD VIEW PRINTER VERSION BACK NEXT Brief Exercise 9-6 Your answer is incorrect. Try again. Swifty Corporation acquires a delivery truck at a cost of $82,000. The truck is expected to have a salvage value of $3,000 at the end of its 4.year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. dy Year 1 Year 2 Annual depreciation expense 39500 19750 LINK TO TEXT VIDEO TUTORIAL Question Attempts: 1 of 3 used SAVE FOR LATER

Explanation / Answer

Straigh line depreciation rate = 1 / 4 = 25%

Double declining depreciation rate = 25% *2 = 50%

1st year depreciation = 82000 * 50% = 41000

2nd year depreciation = (82000 - 41000) * 50% = 20500

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