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)

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