On January 1, a Machine with a Useful Life of Five

question 179

Multiple Choice

On January 1, a machine with a useful life of five years and a residual value of $3,000 is purchased for $15,000. What is the depreciation expense in year 2 using the double-declining-balance method?

• A) $3,600
• B) $4,800
• C) $4,080
• D) $6,000