Depreciation Methods A company uses the double-declining-balance method of depreciation. The company purchases an asset for $40,000,

Question:

Depreciation Methods A company uses the double-declining-balance method of depreciation. The company purchases an asset for $40,000, which is expected to have a ten-year life and a $4,000 residual value.
What depreciation rate will be applied each year?
What amount will be charged for depreciation in the first and second years?
What amount will be treated as depreciation over the ten-year life?