Suppose a Tractor Purchased at a Price of $60,000 Is

question 275

Multiple Choice

Suppose a tractor purchased at a price of $60,000 is to be depreciated by the double declining-balance method over a 10-year period.It can be shown that the rate at which the book value will be decreasing is given by dollars/year at year .Find the amount by which the book value of the tractor will depreciate over the first 3 years of its life.Please round the answer to the nearest cent.

• A)$43,401.11
• B)$29,142.74
• C)$40,468.67
• D)$42,110.89
• E)$32,407.03