On January 1, the company purchased a machine for $80,000. The machine had an estimated useful life

Question:

On January 1, the company purchased a machine for $80,000. The machine had an estimated useful life of eight years and an estimated salvage value of $8,000. After three full years of using the machine, the company changed its depreciation method from straight-line to double-declining-balance. Compute depreciation expense for the fourth year.

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...