A company purchased office equipment for $30,000 and estimated a salvage value of $6,000 at the end of its 8-year useful life.The constant percentage to be applied against book value each year if the double-declining-balance method is used is
A)8%.
B)12.5%.
C)25.0%.
D)2.5%.

Question

Quizplus · Accepted Answer

The double-declining-balance method uses twice the straight-line depreciation rate. The straight-line rate is 1/8 (12.5%) for an 8-year life, so the double-declining rate is 25%.

A Company Purchased Office Equipment for $30,000 and Estimated a Salvage