Double-declining-balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number. 2019 % 2020 2021 % 2022 % 2023 % I only need the double-declining balance for this problem. Thank you.
Burrell Company purchased a machine for $35,000 on January 2, 2019. The machine has an estimated service life of 5 years and a zero estimated residual value. The asset earns income before depreciation and income taxes of $17,500 each year. The tax rate is 30%.
Required:
Compute the rate of return earned (on the average net asset value) by the company each year of the asset's life under the straight-line and the double-declining-balance depreciation methods. Assume that the machine is the company's only asset.
Double-declining-balance depreciation method. Round to two decimal places. Round your intermediate dollar value calculations to the nearest whole number.
| 2019 | % |
| 2020 | |
| 2021 | % |
| 2022 | % |
| 2023 | % |
I only need the double-declining balance for this problem. Thank you.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
