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A machine is purchased on September 30, 2009, for $60,000. Useful life is estimated at four years and no residual value is anticipated. The Double Declining Balance depreciation method is used. The acquiring company's fiscal year ends on December 31. Depreciation for 2010 should be: $15,000 $30,000 $26,250 None of the above.

Respuesta :

Answer:

$30,000

Explanation:

Given

Cost of assets purchased on September 30, 2009 = $60,000

Useful life = 4 years

Annual depreciation using the straight line method = $60000/4

                                                                                      = $15,000

Using the Double Declining Balance depreciation method is used

Annual depreciation = 2 × $15,000

                                  = $30,000

Depreciation for 2010 is $30,000.

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