DECLINING BALANCE DEPRECIATION

Use the same information in Cornerstone Exercise 7-17, except that Irons uses the double-declining-balance method of depreciation.
Exercise 7-17
STRAIGHT-LINE DEPRECIATION
Irons Delivery, Inc., purchased a new delivery truck for $42,000 on January 1, 2009. The truck is expected to have a $2,000 residual value at the end of its five-year useful life. Irons uses the straight-line method of depreciation.