The Pack Company purchased an office building for $9,000,000. The building had an estimated useful life of 40 years and an expected salvage value of $1,000,000. Calculate the depreciation expense for the second year using the double-declining balance method.

Respuesta :

Depreciation = Cost Price --Salvage/Useful Life

=9,00,000-1,00,000/40

=8,00,000/40

= 20,000

Explanation:

Depreciation is 20,000