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Double - Declining Balance

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6. Cutter Enterprises purchased equipment for $72,000 on January 1, 2009. The equipment is expected to have a five-year life and a residual value of $6,000.

Using the double-declining balance method, depreciation for 2010 would be:

A. $28,800.

B. $18,240.

C. $17,280.

D. None of these is correct.

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Solution Summary

This solution shows step-by-step calculations to determine the depreciation value in 2010 using the double-declining balance method.

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The double declining balance depreciation method is like the straight-line method on steroids. To use it, accountants first calculate depreciation as if they were using the straight line method. They then figure out the total ...

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