Question
The cost of an asset is $1,140,000, and its residual value is $230,000. Estimated useful life of the asset is five years. Calculate depreciation for
The cost of an asset is $1,140,000, and its residual value is $230,000. Estimated useful life of the asset is five years. Calculate depreciation for the first year using the doubleminusdecliningminusbalance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
A. $364,000
B. $456,000
C. $182,000
D. $228,000
On October 1, 2018, Northern Inc. purchased a patent for $202,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only 10 years. The patent has no residual value. What will be the balance in the patent account on September 30, 2019?
A. $181,800
B. $202,000
C. $191,900
D. $101,000
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