Question:
A company purchased factory equipment for $250,000. It is estimated that the equipment will have a $25,000 salvage value at the end of its estimated five year useful life. If the company uses the double-declining balance method of deprecation, the amount of annual depreciation recorded for the second year after purchase would be
a. $100,000
b. $60,000
c. $90,000
d. $43,000