Cost of an Asset Is $1,000,000 and Its Residual Value

question 37

Multiple Choice

Cost of an asset is $1,000,000 and its residual value is $100,000. Estimated useful life of the asset is four years. Calculate depreciation for the second year using the double-declining-balance method of depreciation.

• A)$250,000
• B)$225,000
• C)$450,000
• D)$240,000