A Company Purchased Office Equipment for $40,000 and Estimated a Residual

question 25

Multiple Choice

A company purchased office equipment for $40,000 and estimated a residual value of $8,000 at the end of its 5-year useful life.The constant percentage to be applied against book value each year if the double-declining-balance method is used is

• A)20%.
• B)25%.
• C)40%.
• D)4%.