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marlow company purchased a point of sale system on january 1 for $5,500. this system has a useful life of 5 years and a salvage value of $450. what would be the depreciation expense for the second year of its useful life using the double-declining-balance method?multiple choice$1,320.$2,200.$2,020.$1,256.$1,010.
marlow company purchased a point of sale system on january 1 for $5,500. this system has a useful life of 5 years and a salvage value of $450. what would be the depreciation expense for the second year of its useful life using the double-declining-balance method?multiple choice$1,320.$2,200.$2,020.$1,256.$1,010.
Final answer:The second year's depreciation of a point of sale system purchased for $5,500, having a useful life of 5 years and a salvage value of $450, under the double-declining-balance method is $1,320.Explanation:The double declining balance method of depreciation is an accelerated method of depreciation. It means a larger proportion of the asset cost is depreciated in the early years. To calculate annual depreciation, you first calculate the straight-line depreciation rate and then double it. Here is the step-by-step calculation:Calculate the straight line depreciation rate: 1/5 = 0.20 or 20%.Double this to get the double-declining-balance rate: 2*20% = 40% depreciation rate.On the first year, the depreciation expense would be: $5,500 * 40% = $2,200. This leaves a book value of $5,500 - $2,200 = $3,300.On the second year, thedepreciation expensewould be 40% * Book value at the start of the second year: $3,300 * 40% = $1,320.Learn more aboutDouble-declining-balance methodhere:brainly.com/question/30403633#SPJ11...