Tory Enterprises pays $243,400 for equipment that will last five years and have a $44,100 salvage value. By using the equipment in its operations for five years, the company expects to earn $89,000 annually, after deducting all expenses except depreciation.

QUESTION: I'm wondering about the formula to get Accumulated Depreciation for year 2 and so on, please explain?!

Depreciation Schedule Income Computation Calculate annual depreciation expenses using double-declining-balance method. (Round Annual whole dollar.) End of Period Year Depreciation for the Period Beginning of Depreciation Annual Period Book Rate Value Depreciation Accumulated Depreciation Book Value Year 1 $ 40% $ 97,360 Year 2 243,400 146,040 87,624 40% 97,360 $ 58,416 35,050 8,474 $ 146,040 87,624 52,574 Year 3 40% Year 4 52,574 40% 44,100 44,100 Year 5 44,100 40% 0 Total $ 199,300