Correia Merchandising’s equipment, all of which was purchased on


Question Description:

35

Correia Merchandising’s equipment, all of which was purchased on June 1, cost $95,000, with an estimated residual or salvage value of $5,000, and a useful life of five years. Assuming that Correia Merchandising uses the double-declining-balance depreciation method, calculate the dollar amount reported in the company’s general ledger equipmentaccount at the end of its first year ended May 31. a.$113,000 b.$57,000 c.$95,000 d.$133,000 e.$77,000 Correia Merchandising’s equipment, all of which was purchased on June 1, cost $95,000, with an estimated residual or salvage value of $5,000, and a useful life of five years. Assuming that Correia Merchandising uses the double-declining-balance depreciation method, calculate the dollar amount reported in the company’s general ledger accumulated depreciation, equipment account at the end of its first year ended May 31. a. $57,000 b. $36,000 c. $18,000 d. $38,000 e.$77,000

Answer

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