Lavery Company purchased a machine that was installed and placed in service on July 1, Year 1 at a cost of $ 240,000 Salvage value was estimated at $ 40,000 The machine is being depreciated over 10 years by the double declining balance method For the year ended December 31, Year 2, what amount shou...

Choice d is correct Double declining balance with a ...

Lavery Company purchased a machine that was installed and placed in service on July 1, Year 1

Question:

Lavery Company purchased a machine that was installed and placed in service on July 1, Year 1 at a cost of $ 240,000. was estimated at $ 40,000. The machine is being depreciated over 10 years by the double declining balance method. For the year ended December 31, Year 2, what amount should Lavery report as depreciation expense?
a. $ 48,000
b. $ 38,400
c. $ 32,000
d. $ 43,200 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...