Answer:
The second year depreciation under this method amounts to $10,282
Explanation:
The depreciation rate under the method of double declining balance is computed as:
Depreciation rate = 1/ Number of years × 2
= 1/ 7 × 2
= 0.28 or 28%
Now, will be computing the first year depreciation:
First year depreciation = Cost of Machine × Depreciation rate
= $51,000 × 28%
= $14,280
Computing the second year depreciation:
Second year depreciation = (Cost of machine -First year depreciation) × Depreciation rate
= ($51,000 - $14,280) × 28%
= $36,720 × 28%
= $10,281.6 or $10,282
