an asset has a cost of $50,000, with a residual value of $10,000. it has a life of 5 years and was purchased on January 1. under double-declining-balance, what's the asset's fourth full year of depreciation expense?

I got $800.00 but not sure if this is right, the way I did it.

 

You are right.

Fourth year full depreciation expense=$800

Step-by-step explanation

You are right

The double declining balance method formula is:

Annual depreciation expense=2*straight line depreciation rate*beginning book value

Straight line depreciation rate=1/useful life

Straight line depreciation rate=1/5=0.2

First year depreciation expense=2*0.2*50,000=20,000

Book value at end of year 1=$50,000-$20,000=$30,000

Second year depreciation expense=2*0.2*30,000=$12000

Book value at the end of year 2=$30,000-$12000=$18000

Third year depreciation expense=2*0.2*18000=$7200

Book value at the end of year 3=18000-$7200=$10800

The book value of the asset at the beginning of year 4 =$10,800

The book value of the asset at the end of year 4=$10,000 (the salvage value)

This means that the depreciation expense for the fourth year =$10, 800-$10,000=$800

Depreciation expense for the fourth year=$800