On April 1, 2018, Chickadee Corp. purchased new machinery for $400,000. The machinery has an estimated useful life of ten years, a residual value of $20,000, and depreciation is calculated using the double-declining-balance method. Chickadee's year end is December 31. The accumulated depreciation on this machinery at March 31, 2020, should be

Question

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First, we need to determine the annual depreciation expense using the double-declining-balance method.

Double-declining-balance rate = 2 / Useful life = 2 / 10 = 20%

Year 1 depreciation expense = 20% x $400,000 = $80,000 
Year 2 depreciation expense = 20% x ($400,000 - $80,000) = $64,000 
Year 3 depreciation expense = 20% x ($400,000 - $80,000 - $64,000) = $51,200

The accumulated depreciation at March 31, 2020, includes the depreciation expense for the first three years.

Accumulated depreciation at March 31, 2020 = $80,000 + $64,000 + $51,200 = $195,200

However, we need to account for the residual value of $20,000.

Accumulated depreciation at March 31, 2020 = $195,200 - $20,000 = $175,200

Therefore, the answer is choice C, $141,600.