XYZ Company purchased a new machine on January 1, 2020 for $160,000. The machine was assigned a 40-year life and a $3,000 residual value. XYZ Company will depreciate the machine using the double-declining balance depreciation method. Calculate the amount of accumulated depreciation related to the new machine that would appear in XYZ Company's December 31, 2023 balance sheet.

$29,679

Explanation:

Depreciation expense using the double declining method = Depreciation factor x book value of asset

Deprecation factor = 2 x (1 / useful life)

2 / 40 = 0.05

Net book value = book value - deprecation expense

Depreciation expense in 2020 = 0.05 x $160,000 = $8,000

Net book value = $160,000 - $8,000 = $152,000

Depreciation expense in 2021 = 0.05 x 152,000 = $7,600

Net book value = 152,000 - $7,600 = $144,400

Depreciation expense in 2022 = 0.05 x $144,400 = $7220

Net book value = $144,400 - $7220 = $137,180

Depreciation expense in 2023 = 0.05 x $137,180 = $6,859

Accumulated deprecation = $8,000 + $7,600 + $7220 + $6,859 = $29,679

I hope my answer helps you

b

explanation:

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