Accelerated Depreciation
Ned reviewed the assets from his recent acquisition of his competitor, Office Space, and calculated their depreciation. One of the biggest draws for Ned had been the new pieces of machinery Office Space owned. The machine used to produce notebooks cost $750,000 when it was purchased new one year ago. It has an expected life span of 10 years. The income statement showed the straight line deprecation rate as 10%.
Using double declining balance depreciation, Ned calculated the value of the machine at the end of year two as $__________.