Sheffield Corp. purchased a depreciable asset for $381000. The estimated salvage value is $27000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?

the second year depreciation expense using the double-declining method is $71,437.50

Explanation:

The computation of the second year depreciation expense using the double-declining method is as follows:

First determine the depreciation rate i.e.

= 1 ÷ 8 years × 2

= 25%

Now the depreciation for the first year is

= $381,000 × 0.25

= $95,250

And, for the second years, it is

= ($381,000 - $95,250) × 0.25

= $71,437.50

hence, the second year depreciation expense using the double-declining method is $71,437.50

explanation:

a gas is not used in hydraulic machines as the fluid because gas is easily compressible and so if a gas is used, the energy would mostly go into compressing a gas. therefore a liquid is used in hydraulic machines as the fluid.