Find the First Year's Depreciation, Using the Double-Declining-Balance Method

question 37

Multiple Choice

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar.
-Cost: $54,000
Est. life: 20 years
Est. scrap: $5,000

• A)$2,700
• B)$2,450
• C)$4,900
• D)$5,400

---

Definitions:

Guests

Individuals who receive services or hospitality, often in contexts such as hotels, restaurants, or events.

Billafuerte Jeep Tours

A hypothetical or specific company offering guided jeep tours in the Billafuerte region.

Cost Drivers

Factors that cause fluctuations in the cost of a product or service, such as machine-hours, labor-hours, or the quantity of materials used.

Planning Budget

A budget prepared for a future period that outlines an organization's financial goals, resources, and expenditures.