Equipment purchased at the beginning of Year 1 for $200,000 with residual value of $20,000 is being depreciated over a five-year period using the double-declining-balance method.Which of the following statements is correct concerning the financial statements at December 31,Year 1?
A) The equipment account now has a balance of $120,000.
B) The book value of the equipment is now $80,000.
C) The accumulated depreciation account balance is now $80,000.
D) Depreciation expense for Year 1 is $72,000.
Correct Answer:
Verified
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