Hasmine Company purchased a depreciable asset for $225,000. The estimated salvage value is $15,000 and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation.

1. What is the depreciation expense for the first year on this asset?

a) 42,188

b) 56,250

c) 26,250

d) 39,375

2. What is the book value (carrying value) of the asset reported on the balance sheet at the end of the first year?

a) 153,750

b) 210,000

c) 225,000

d) 168,750

3. What is depreciation expense for the second year on this asset?

a) 42,188

b) 56,250

c) 39,375

d) 26,250

4. What is the accumulated depreciation at the end of the second year?

a) 56,250

b) 15,000

c) 98,438

d) 42,188

5. What is the book (carrying value) of the asset reported on the balance sheet at the end of the second year?

a) 225,000

b) 153,750

c) 126,562

d) 168,750