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Cutter Enterprises purchased equipment for $54,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $3,900.
Cutter Enterprises purchased equipment for $54,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $3,900. Using the double-declining balance method, depreciation for 2018 and the book value at December 31, 2018, would be:
Multiple Choice
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$20,040 and $33,960 respectively.
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$21,600 and $32,400 respectively.
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$21,600 and $28,500 respectively.
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$20,040 and $30,060 respectively.
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