Acompany purchased a computer system at a cost of $24,000. the estimated useful life is 7 years, and the estimated residual value is $1,000. 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.)

Depreciation expense (year 2) = $4,898

Explanation:

Depreciation rate as double-declining balance method:

Depreciation rate =

Depreciation rate = ×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

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