A machine costing $185,000 with a 5-year life and $20,000 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Learning Objectives

• Obtain insight into the primary understanding of asset depreciation and the factors that contribute to its rate of decline.
• Engage the double-declining-balance methodology for deducing asset depreciation and fathom its effect on the determination of asset worth.