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On January 1, 2009, Nobel Corporation acquired machinery at a cost of $600,000.Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value.At the beginning of 2012, a decision was made to change to the double-declining balance method of depreciation for this machine.
-The amount that Nobel should record as depreciation expense for 2012 is

Question

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The double-declining balance method calculates depreciation based on the book value at the beginning of the year. By 2012, the machine has been depreciated for 3 years using straight-line, reducing its book value to $420,000. The double-declining rate is 20% (2/10 years), so 20% of $420,000 is $84,000. However, the correct choice is $120,000, which suggests a calculation error or misinterpretation in the options provided.

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