New machine for $60,000. the machine is expected to operate for ten years, after which it will be sold for salvage value (estimated to be $2,000). how much is the first and second year’s depreciation expense if the company uses the double-declining-balance method?

The answers are:

Year 1 depreciation = $12,000 Year 2 depreciation = $9,600

Explanation:

To calculate the depreciation expense using the double declining balance method we can do the following:

For years 1 and 2 we will use double depreciation 20% [= (100% / 10) x 2]

Year 1 depreciation = $60,000 × 20% =$12,000

Book value end of year 1 = $60,000 - $12,000 = $48,000

Year 2 depreciation = $48,000 × 20% =$9,600

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?