The Cost of an Asset Is $1,110,000,and Its Residual Value

question 87

Multiple Choice

The cost of an asset is $1,110,000,and its residual value is $110,000.Estimated useful life of the asset is eight years.Calculate depreciation for the second year using the double-declining-balance method of depreciation.(Do not round any intermediate calculations,and round your final answer to the nearest dollar.)

• A) $138,750
• B) $125,000
• C) $250,000
• D) $208,125

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Definitions:

Moles

In chemistry, a unit that measures the amount of substance, defined as containing exactly 6.02214076 × 10^23 particles, such as atoms, molecules, ions, or electrons.

Sodium Chloride

Common table salt, an ionic compound made of sodium and chloride ions, used in food and as a deicing agent.

Sodium

A soft, silvery-white, highly reactive metal that is found in many salts, essential for nerve and muscle function in the human body.

Moles

The SI unit that measures the amount of substance, defined as containing exactly 6.02214076×10^23 particles, such as atoms or molecules.