On January 1 of Year 1, Merrilton Company purchased a machine for $20,000. The machine is expected to have a 6-year useful life and salvage value of $2,000. The company uses double-declining-balance depreciation. What is the amount of depreciation expense on this machine for Year 2?

$5,000

$3,333

$4,000

$4,444 Correct!

The answer is calculated as follows: Straight-line rate: 100% 6 years = 16.67%

Double the straight-line rate: 2 16.67% = 33.33%

Depreciation expense Year 1 = Beginning book value Rate = $20,000 33.33% = $6,666

Depreciation expense Year 2 = Beginning book value Rate = $20,000 = $6,666 = $13,334 33.33% = $4,444

I literally do not understand that last part of this and how they got the $4,444....