A Firm Purchases an Asset for $50,000 and Estimates That

question 93

Multiple Choice

A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000.Under the double-declining-balance method,the depreciation expense for the second year of the asset's useful life is

• A) $9,000.
• B) $12,000.
• C) $18,000.
• D) $20,000.