[Solved] On January 1, 2020, Rainbow Company paid cash to purchase an automobile. The car dealer gave Rainbow a $3,000 cash

On January 1, 2020, Rainbow Company paid cash to purchase an automobile. The car dealer gave Rainbow a $3,000 cash discount off the $31,000 list price. However, Rainbow paid an additional $5,000 to equip the car with a more luxurious interior and high tech lighting so it would have greater appeal. Rainbow Company expected the car to have a five-year useful life and a $5,000 salvage value. Rainbow also expected to use the car for 140,000 miles before disposing of it. Rainbow used the car, and it was driven 20,000 / 30,000 / 40,000 / 30,000 / 20,000 miles during each use year respectively. Rainbow sold the car on January 1, 2026, for $6,000 cash the double declining balance method of depreciation.

Required:
What is the percentage depreciation Rainbow will use?

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