Chapter $8$

Exploration $8\mathrm{.}2$c$-$ Double$-$Declining Balance Method $(13)$

Goal: Learn how to calculate depreciation using the double$-$declining method.

Instructions: You are given information about a plant and equipment asset. You must calculate depreciation of that asset using the double$-$declining method.

Do not include the $ sign in your answers.

Your answers must be correct to exactly $2$ decimal places.

Do not include the, indicating thousands in your answers.

XYZ Corporation acquired a delivery truck on January $1,2024$ for $$49,000.$ The delivery truck is expected to last $5$ years and then it will sell for about $$5,900.$ XYZ Corporation's year$-$end is December $31.$ Calculate the following using the double$-$declining method. For simplicity, assume that the delivery truck is depreciated as one unit; it will not be broken down into its parts and depreciated.

Compute Depreciation for the year $2024.$

Compute Depreciation for the year $2025.$

Compute Depreciation for the year $2026.$

Compute Depreciation for the year $2027.$