Declining-balance depreciation, first year

Transaction

On January 1 a company bought a new machine for $30,000.00 and placed it in service the same day. Its useful life is 5 years, with no salvage value. Record the first year's depreciation on December 31.

Assumptions: Depreciation is accumulated in Accumulated Depreciation. Double-declining-balance method: twice the straight-line rate, applied to the book value at the start of each year. A full year of depreciation.