Using the double-declining balance method, calculate the annual depreciation expense that will be recorded each year for

Question:

Using the double-declining balance method, calculate the annual depreciation expense that will be recorded each year for an asset that cost $18,500, has a useful life of four years, and has an estimated salvage value of $3,500. Explain what accounting issue arises, if any, in the third and fourth years.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...