Depreciation: Declining Balance Video Lessons

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Problem: Williams Company plans to depreciate a new building using double-declining- balance depreciation. The building cost $700,000. The estimated residual value of the building is $25,000 and it has an expected useful life of 4 years. What is the building’s book value at the end of the second year? a. $175,000. b. $362,500. c. $168,750. d. $77,778. e. None of the above is correct.

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Problem Details

Williams Company plans to depreciate a new building using double-declining- balance depreciation. The building cost $700,000. The estimated residual value of the building is $25,000 and it has an expected useful life of 4 years. What is the building’s book value at the end of the second year?

a. $175,000.

b. $362,500.

c. $168,750.

d. $77,778.

e. None of the above is correct.

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