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anonymous
 one year ago
A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the decliningbalance method at twice the straightline rate, the book value at the end of year 2 is
anonymous
 one year ago
A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the decliningbalance method at twice the straightline rate, the book value at the end of year 2 is

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radar
 one year ago
Best ResponseYou've already chosen the best response.0Not sure if this is the same as double declining balance deprecation or not. But depreciation rate for 5 year life is 20%, so double would be 40% and using declining balance at that rate: 1st yr $35,000 X 40% is $14,000 so balance at first year would be $21,000. You can figure the next year (or 2nd year) value, which is what the problem is asking.
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