Answer:
The correct answer is C.
Explanation:
Giving the following information:
A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year1= [(65,000 - 5,000)/4]*2= $30,000
Year2= [(60,000 - 30,000)/4]*2= $15,000
The amount of depreciation for the second year, using the double declining-balance method is $16,250.
Depreciation rate = 1 ÷ 4 × 2 = 0.50
Now the first year depreciation is
= $65,000 × 0.50
= $32,500
Now the second year depreciartion is
= ($65,000 - $32,500) × 0.50
= $16,250
Learn more: brainly.com/question/17429689
