Answer:
Depreciation expense (year 2) = $4,898
Explanation:
Depreciation rate as double-declining balance method:
Depreciation rate = [tex]\frac{100}{UsefulLife}[/tex]
Depreciation rate = [tex]\frac{100}{7}[/tex]×2
Depreciation rate = 28.6%
Depreciation expense (year 1) = Cost×Depreciation rate
Depreciation expense (year 1) = $24,000×28.57%
Depreciation expense (year 1) = $6,856.8
Book value (year 1) = Cost - Depreciation expense (year 1)
Book value (year 1) = $24,000 - $6,856.8
Book value (year 1) = $17,143.2
Depreciation expense (year 2) = Book value (year 1)×Depreciation rate
Depreciation expense (year 2) = $17,143.2×28.57%
Depreciation expense (year 2) = $4,898
