Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be: O $26,400 and $39,600 respectively. O $26,400 and $45,600 respectively. O $28,800 and $37,200 respectively. O $28,800 and $43,200 respectively.

Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be: O $26,400 and $39,600 respectively. O $26,400 and $45,600 respectively. O $28,800 and $37,200 respectively. O $28,800 and $43,200 respectively.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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