• Calculate the annual depreciation expense for a piece of machinery purchased by General Electric Company.
• Use the following data:
  • Cost of Machinery: $300,000
  • Salvage Value: $30,000
  • Useful Life: 10 years
  • Depreciation Method: Double-Declining Balance

Question:

Using the given data, calculate the annual depreciation expense for the machinery using the double-declining balance method for the first two years. Show your calculations and explain the rationale behind using the double-declining balance method.