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Assume a fixed asset cost of $10,000 and a useful life of five years. In commencing to compute double-declining depreciation, the double-declining factor is computed
Assume a fixed asset cost of $10,000 and a useful life of five years. In commencing to compute double-declining depreciation, the double-declining factor is computed as follows: first the $10,000 cost of the fixed asset is divided by the asset's useful life of five years to equal 20%, or a factor of .20. Required: Next multiply the factor of .20 by what amount to arrive at the proper double-declining factor?
A. | Multiply by ten percent | |
B. | Multiply by one-and-one-half | |
C. | Multiply by two | |
D. | None of the above |
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