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Double Declining Method

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V Co. purchased machinery that was installed and ready for use on January 3, 2006, at a total cost of $69,000. Salvage value was estimated at $9,000. The machinery will be depreciated over five years using the double-declining balance method.

For the year 2007, V. should record depreciation expense on this machinery in the amount of ?

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Solution Summary

The solution explains how to calculate the depreciation expense under double declining balance method.

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In the double declining balance method the depreciation is calculated as Book Value X Rate. This ...

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