Math Problem Statement
he cost of an asset is $1,170,000, and its residual value is $260,000. Estimated useful life of the asset is five years. Calculate depreciation for the first year using the double-declining-balance method of depreciation.
Solution
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Math Problem Analysis
Mathematical Concepts
Depreciation
Double-Declining Balance Method
Book Value
Formulas
Straight-line depreciation rate = 100% ÷ Useful life
Double-declining rate = 2 × Straight-line rate
Depreciation = Double-declining rate × Book value
Theorems
Accelerated Depreciation
Suitable Grade Level
Grades 10-12 or early college accounting courses
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