Bart paid $150,000 for a piece of equipment for his business. Bart's income statement putsthe straight line depreciation rate at 20%, and the equipment is expected to have a residualvalue of $1,000 at the end of its useful life, which is expected to be five years.Total Book ValueUseful life$150,0005 years20%Straight line depreciation (%)Double declining balance (5)Double Declining Balance DepreciationBook ValueYear (Beginning of Year)125DepreciationRateDepreciationExpenseAccumulatedDepreciationBook Value(End of Year)Using double declining balance depreciation, what is the value of the piece of equipment atthe end of year one?O $60,0000 $90,000$100,000

Given,Book value = $150000 We know that,Double-declining-balance rate = [2 * straight line…

Answered: Bart paid $150,000 for a piece of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PLEASE ANSWER NEAT AND ASAP, ONLY ANSWER IF 100% CORRECT!
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