The cost of an asset is $1,110,000, and its residual value is $300,000. estimated useful life of the asset is five years. calculate depreciation for the second year using the double-declining-balance method of depreciation. (do not round any intermediate calculations, and round your final answer to the nearest dollar.)

a) $266,400
b) $324,000
c) $162,000
d) $222,000

$266,400.00

Explanation:

Calculating Depreciation using the double depreciation method

Cost of the asset $1,110,000.00

Residual value  $ 300,000.00

Useful five year

Depreciation rate = 1/5*100=  20 percent

double depreciation = 40 percent

depreciation year one: = $ 1,110,000.00 x40/100

     =$1,110,000.00x0.4

     =$444,000.00

Depreciation for year 2: ($ 1,110,000.00- $444,000.00)x 0.4

     =$666,000x0.4

     =$266,400.00

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