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Please Help. Can you tell me what am I doing wrong because I keep getting it wrong? Corales Company acquires a delivery truck at a

Please Help. Can you tell me what am I doing wrong because I keep getting it wrong?

Corales Company acquires a delivery truck at a cost of $77,000. The truck is expected to have a salvage value of $8,000at the end of its5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method. I have tried calculating 3x's and no luck. This is my answers that I came up with Straight Line Depreciation: (77,000-8,000)/5/77,000=0.18, Reducing Balance Depreciation Rate: 2*0.18=0.36 or 36% Annual Depreciation Under Declining Balance Method: Year 1: $77,000 x 36% = $27,720 DepreciationYear 2: ($77,000 - 27,720) x 36% = $17,740.80

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