Answer:
The depreciation expense would amount to $15,500
Explanation:
Under the double declining method, the formula is as:
Annual depreciation expense = Net Book Value × 2 / Number of years
where
Net book value amounts to $77,500
Number of years is 10 years
Putting the value above:
Annual depreciation expense = $ 77,500 × 2 / 10
= $77,500 × 0.2
= $15,500
NOTE: Under the method of double declining, the residual or the salvage value is not considered or ignored.
When using the double-declining method, residual value is ignored.
