Depreciation: Declining Balance Video Lessons

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Problem: On January 2, 2003, Kedri Kemper purchased a new truck for $20,000. The estimated life of the equipment is 5 years or 100,000 miles. The estimated residual value is $1,000. What is the book value of the equipment on December 31, 2004 if Kedri uses the double-declining balance method of depreciation? a. $4,800 b. $7,200 c. $12,000 d. $12,800

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Problem Details

On January 2, 2003, Kedri Kemper purchased a new truck for $20,000. The estimated life of the equipment is 5 years or 100,000 miles. The estimated residual value is $1,000. What is the book value of the equipment on December 31, 2004 if Kedri uses the double-declining balance method of depreciation?

a. $4,800

b. $7,200

c. $12,000

d. $12,800

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