This exercise requires calculating the depreciation expense using the double-declining-balance method, applied partially for the first year since the purchase was made on April 1.

Here's the process to solve it:

Given Information

• Cost of the asset: $290,000
• Salvage value: $45,000
• Useful life: 5 years
• Depreciation method: Double-declining-balance (DDB)
• Partial year depreciation: April 1 to December 31, which is 9 months or 9/12 of a year.

Steps

1. Calculate the straight-line depreciation rate: $\text{Straight-line rate} = \frac{100\%}{5} = 20\%$

2. Double the straight-line rate: $\text{Double-declining rate} = 20\% \times 2 = 40\%$

3. Year 1 Partial Depreciation Calculation:

   • Start of Year Book Value = $290,000
   • Depreciation Expense = Beginning Book Value × DDB Rate × Partial Year Factor
   • Calculation: $\text{Depreciation Expense (Year 1)} = 290,000 \times 40\% \times \frac{9}{12} = 116,000$
   • End of Year Book Value for Year 1: $\text{End Book Value} = 290,000 - 116,000 = 174,000$

4. Update Table for Year 1 (already filled in):

   • Beginning Book Value: $290,000
   • Depreciation Expense: $116,000
   • Accumulated Depreciation: $116,000
   • Book Value at end of Year 1: $174,000

Year 2 Calculation (if needed)

If you would like, I can also calculate Year 2 using this double-declining balance method. Let me know if you'd like to continue.

Would you like more detailed explanations or calculations? Here are some related questions to explore:

1. How would the depreciation expense differ using a straight-line method?
2. What would be the impact of using a different salvage value?
3. How does double-declining-balance depreciation compare with other methods in terms of expense allocation?
4. How does the partial-year factor affect the depreciation calculation?
5. How would changes in the asset's useful life affect depreciation expense?

Tip: Double-declining-balance depreciation accelerates expense recognition, reducing book value faster in the early years compared to other methods.