Farr company purchased a new van for floral deliveries on january 1, 2020. the van cost $56,000 with an estimated life of 5 years and $14,000 salvage value at the end of its useful life. the double-declining-balance method of depreciation will be used. what is the balance of the accumulated depreciation account at the end of 2021

The balance of the Accumulated Depreciation account at the end of 2021 is $26,880

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total asset cost - salvage value =  $56,000-$14,000 = $42,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2020 = 40% x $42,000  = $16,800

At the beginning 2021, the Depreciable cost's book value is $42,000-$16,800 = $25,200

Depreciation expense for 2021 = 40% x $25,200 = $10,080

The balance of the Accumulated Depreciation account at the end of 2021 = $16,800 + $10,080 = $26,880

answer; schedule c;

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.