On July 1, 2020 a company purchased some modern laser machines for $120,000. They expect to use the machines for 5 years at which time they think the machines can be sold for $20,000. The company uses the double diminishing-balance method of depreciation. Calculate the depreciation expense for 2021Select answer from the options below$19,200$48,000$38,400$40,000Save for LaterSubmit Answer

To calculate the depreciation expense for 2021 using the double diminishing-balance method, follow these steps:

1. Determine the initial cost of the asset: $120,000
2. Determine the salvage value of the asset: $20,000
3. Determine the useful life of the asset: 5 years
4. Calculate the straight-line depreciation rate: 1/5 = 20%
5. Double the straight-line rate for the double-declining balance method: 2 * 20% = 40%
6. Calculate the depreciation for the first year (2020): 40% * $120,000 =$48,000
7. Subtract the first year's depreciation from the initial cost to get the book value at the start of 2021: $120,000 -$48,000 = $72,000
8. Calculate the depreciation for the second year (2021): 40% * $72,000 =$28,800

So, the depreciation expense for 2021 is $28,800. However, this option is not given in your list. Please check the calculation or the options provided.

To calculate the depreciation expense for 2021 using the double diminishing-balance method, follow these steps:

1. Determine the initial cost of the asset: $120,000
2. Determine the salvage value of the asset: $20,000
3. Determine the useful life of the asset: 5 years
4. Calculate the straight-line depreciation rate: 1/5 = 20%
5. Double the straight-line rate for the double-declining balance method: 2 * 20% = 40%
6. Calculate the depreciation for the first year (2020): 40% * $120,000 =$48,000
7. Subtract the first year's depreciation from the initial cost to get the book value at the start of 2021: $120,000 -$48,000 = $72,000
8. Calculate the depreciation for the second year (2021): 40% * $72,000 =$28,800

So, the depreciation expense for 2021 is $28,800. However, this option is not given in your list. Please check the calculation or the options provided.