A piece of equipment was acquired on January 1,2018,at a cost of $22,000,with an estimated residual value of $2,000 and an estimated useful life of four years.The company uses the double-declining-balance method.What is its book value at December 31,2019?
A)$5,500
B)$10,000
C)$11,000
D)$12,000

Question

Quizplus · Accepted Answer

Year 1: ($22,000)* (2/4)= $11,000
Accumulated Depreciation end of year 2 = $16,500
Book Value = Cost - Accumulated Depreciation to date
Book Value = $22,000 - $16,500
Book Value = $5,500.

A Piece of Equipment Was Acquired on January 1,2018,at a Cost