J. Pohl purchased office equipment for $5,000 on January 1, 2017. It has a residual value of $500 with a useful life of 5 years. After the appropriate adjusting entry is made, the book value of the asset on December 31, 2017, under the double declining-balance method, is:

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The double declining balance method of depreciation involves doubling the straight-line rate of depreciation. For an asset with a useful life of 5 years, the straight-line depreciation rate is 20% (100% / 5 years). Doubling this rate gives a depreciation rate of 40% per year under the double declining balance method. In the first year, the depreciation expense is 40% of $5,000, which is $2,000. Therefore, the book value at the end of the first year is the original cost ($5,000) minus the first year's depreciation ($2,000), resulting in a book value of $3,000.

J Pohl Purchased Office Equipment for $5,000 on January 1