required information\nuse the following information for the quick studies below. (algo)\nthe following…

required information\nuse the following information for the quick studies below. (algo)\nthe following information applies to the questions displayed below.\nequipment costing $60,000 with a 4 - year useful life and an estimated $10,000 salvage value is acquired and started operating on january 1. the equipment is estimated to produce 5,000 units of product during its life. it produced 750 units in the first year.\nqs 10 - 7 (algo) computing depreciation under different methods lo p1\ncompute depreciation for the first year under straight - line, units - of - production, and double - declining - balance.\ncomplete this question by entering your answers in the tabs below.\nrequired 1\nrequired 2\nrequired 3\ncompute depreciation for the first year under double - declining - balance.\ndouble - declining - balance depreciation for the first year

required information\nuse the following information for the quick studies below. (algo)\nthe following information applies to the questions displayed below.\nequipment costing $60,000 with a 4 - year useful life and an estimated $10,000 salvage value is acquired and started operating on january 1. the equipment is estimated to produce 5,000 units of product during its life. it produced 750 units in the first year.\nqs 10 - 7 (algo) computing depreciation under different methods lo p1\ncompute depreciation for the first year under straight - line, units - of - production, and double - declining - balance.\ncomplete this question by entering your answers in the tabs below.\nrequired 1\nrequired 2\nrequired 3\ncompute depreciation for the first year under double - declining - balance.\ndouble - declining - balance depreciation for the first year

Answer

Explanation:

Step1: Calculate straight - line depreciation rate

The straight - line depreciation rate $r=\frac{1}{n}$, where $n = 4$ (useful life in years). So $r=\frac{1}{4}=0.25$. The double - declining - balance rate $R = 2r=2\times0.25 = 0.5$.

Step2: Calculate double - declining - balance depreciation for the first year

The initial cost of the equipment is $C=$60,000$. The double - declining - balance depreciation formula for the first year is $D_1=R\times C$. Substitute $R = 0.5$ and $C = 60000$ into the formula. So $D_1=0.5\times60000=$30,000$.

Answer:

$30,000$