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Safari File Edit View History Bookmarks Window Help newconnect.mheducation.com ep Google Apple netfix Wikipedia youtube rdirecta Facebook footble Yelp directvnow zeekgps pearson utep Air Jordan, Nike, adidas, Supre.. Air Jordan 1 Hi Retro Think 1... Connect h. 11 Assessment Saved Help Save & Exit Submit 5 Cutter Enterprises purchased equipment for $78,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $4,800 Using the double-declining balance method, the book value at December 31, 2019, would be: 02:45:06 eBook Multiple Choice $28,080 $27,180 $15,600 $29,280. 30

Explanation / Answer

Depreciation rate under double declining balance method

= 1 / Useful life x 2

= 1 / 5 x 2

= 0.40 or 40%

Depreciation under double declining balance method

= Book value at the beginning of the year x Depreciation rate

So, Depreciation for 2018

= $78,000 x 40%

= $ 31,200

So, Book value at the beginning of 2019

= Book value at the beginning of 2018 – Depreciation of 2018

= $78,000 - $ 31,200

= $ 46,800

So, Depreciation for 2019

= $ 46,800 x 40%

= $ 18,720

So, Book value at the end of 2019

= $46,800 - $ 18,720

= $ 28,080

So, as per above calculations, option A is the correct option

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