Tran Inc. purchased equipment for $48,000, and estimated that the equipment will have a $4,000 residual value at the end of its 8-year useful life. Using the double diminishing-balance method, the depreciation expense for the third year would be
A) $9,000.
B) $6,750.
C) $6,188.
D) $5,500.

Question

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The Answer of Tran Inc. purchased equipment for $48,000, and estimated that the equipment will have a $4,000 residual value at the end of its 8-year useful life. Using the double diminishing-balance method, the depreciation expense for the third year would be
A) $9,000.
B) $6,750.
C) $6,188.
D) $5,500.

Tran Inc Purchased Equipment for $48,000, and Estimated That the Equipment