Cost of truck $1,000,000 Estimated useful life 4 years Estimated salvage value $60,000 What is depreciation expense in Year 4 using the double-declining balance method? Multiple Choice $62,500 $87,500 $73,750 $65,000
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The straight-line depreciation expense is calculated by subtracting the salvage value from the cost of the truck and dividing it by the useful life. Depreciation expense = (Cost of truck - Salvage value) / Useful life Depreciation expense = ($1,000,000 - $60,000) Show more…
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