Question

A company purchased equipment valued at $200,000 on January 1. The equipment has an estimated useful life of six years or 5 million units. The equipment is estimated to have a salvage value of $13,400. Assuming the double declining balance method of depreciation, what is the book value at the end of the second year?

A $166,667.00
B. $88,897.78
C. $96,416.25
D. $168,900.00
E. $137,800.00

Answer

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