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The Cerearls Company purchases equipment for $100,000. Management estimates that the equipment will have a useful life of eight years and no salvage value. Calculate

The Cerearls Company purchases equipment for $100,000. Management estimates that the equipment will have a useful life of eight years and no salvage value. Calculate depreciation expense at the end of the first year using the double-declining balance method of depreciation.

Select one:

A.

$30,000

B.

$48,000

C.

$62,500

D.

$31,250

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