Use the Double-Declining-Balance Method of Depreciation

question 49

Multiple Choice

Use the double-declining-balance method of depreciation. Round to the nearest dollar.
-Royal Oaks Golf Course buys a tractor for $8,900 and estimates the life at 8 years with a scrap value
Of $890. What is its book value at the end of the fourth year?

• A)$4,005
• B)$2,816
• C)$2,534
• D)$890

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Definitions:

Subsidize

To provide financial support or assistance, often by the government, to lower the cost of producing goods or services.

Ideas In Motion

The concept of actively pursuing and implementing new ideas and innovations.

Money Rate

The rate of interest charged on short-term loans by banks to their customers.

Real Rate

The interest rate that has been adjusted for inflation, reflecting the real cost of borrowing or the real yield on an investment.