A company purchased a computer system at a cost of $27,000. The estimated useful life is 6 years, and the estimated residual value is $8,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.) a) $8,250 b) $6.000 c) $9,000. d) $7.500

$6,000

Explanation:

The calculation of depreciation expense for the second year 5s sh6wn below:-

Depreciation rate as per straight line method=100% ÷ 6

= 16.67% per year

Depreciation as per double decline balance = 2 × Depreciation rate as per straight line method × Beginning value of each period

Year    Beginning value    Depreciation         Ending value

1            $27,000                   $9,000                    $18,000

                           (2 × 16.67% × $27,000)   ($27,000 - $9,000)

2           $18,000                    $6,000

                           (2 × 16.67% × $27,000)

c is the correct answer.

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.