Q23

Murgatroyd Co. purchased equipment on January 1, 2019, for $800,000, estimating a five-year useful life and $100,000 residual value. In 2019 and 2020, Murgatroyd depreciated the asset using the double-declining-balance method. In 2021, Murgatroyd changed to straight-line depreciation for this equipment. What depreciation would Murgatroyd record for the year 2021 on this equipment? (Do not round your depreciation rate.)

Multiple Choice

• $180,000.

• $102,000.

• $ 62,667.

• $95,333.