Using the double-declining balance method, calculate the annual depreciation expense that will be recorded each year for an asset that cost

$18,000,

has a useful life of four years, and has an estimated salvage value of

$3,600.

Explain what accounting issue arises, if any, in the third and fourth years.

Determine the depreciable cost.

	Cost	-.	Salvage value	=	Depreciable cost
		-		=

Complete the depreciation schedule using the double-declining balance method. (Complete all input boxes.)

		Book	Annual	Accumulated
Year	Rate	value	depreciation	depreciation
1

2

3

4

Explain what accounting issue arises, if any, in the third and fourth years.