Declining-balance depreciation method

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Reference no: EM132165423

Declining-balance depreciation method: A unit of equipment is purchased for $120,000 with an expected salvage value of $15,000 after 5 years. Calculate the book value over the expected life of the equipment using the double-declining balance method of depreciation. Average rate of percentage depreciation per year 1/5=0.20 or 20%, for double-declining-balance method 40%.

Reference no: EM132165423

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