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A Printing Machine That Has an Estimated Useful Life of 5

Question 139

Multiple Choice

A printing machine that has an estimated useful life of 5 years and an initial value of $150,000 (with no salvage value) had to be depreciated. At the end of the first year, using the straight-line method of depreciation, the amount of depreciation allowed was $30,000.00, and when the sum-of-the-years'-digits method was used the depreciation was $50,000. Determine the amount of depreciation that would be allowed for the first year if the printing machine were depreciated by the double declining-balance method. Which of these three methods would result in the largest depreciation of the printing machine at the end of its first year of use? ​


A) $50,000.00
Sum Of The Years'-Digits Method
B) $90,000.00
Double Declining-Balance Method
C) $50,000.00
Double Declining-Balance Method
D) $90,000.00
Sum Of The Years'-Digits Method

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