Equipment Was Purchased for $30,000

question 57

Multiple Choice

Equipment was purchased for $30,000.It has a useful life of 5 years and a residual value of $4,000.What is depreciation expense for year two under the double-declining-balance method?

• A)$5,200
• B)$6,000
• C)$6,240
• D)$7,200

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Definitions:

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, precipitation, and runoff.

Mid-Ocean Ridges

Undersea mountain ranges where new oceanic crust is formed through volcanic activity and seafloor spreading.

Hot Springs

Natural springs that discharge water heated by geothermal processes from the Earth's interior.

Planet's Formation

The process by which a planet forms from the gas and dust surrounding a young star, typically through the accretion of material.