Gump Shrimp Company

question 25

Multiple Choice

Gump Shrimp Company
On January 1, 2011, Gump Shrimp Company purchased a ship for $1,000,000. It has a ten-year useful life and a salvage value of $100,000. The company uses the double-declining-balance method.
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Refer to the information provided for Gump Shrimp Company. What was the book value of the ship at the end of the third year?

• A) $128,000
• B) $512,000
• C) $200,000
• D) Need more information to determine this answer.

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