On October 1, 2015, Ming Wo Ltd.places a new asset into service.The cost of the asset is $9,000 with an estimated 5-year life and $1,500 residual value.Assuming that Ming Wo uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2015?
A)$8,100
B)$6,750
C)$6,000
D)$5,400

Question

Quizplus · Accepted Answer

The Answer of On October 1, 2015, Ming Wo Ltd.places a new asset into service.The cost of the asset is $9,000 with an estimated 5-year life and $1,500 residual value.Assuming that Ming Wo uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2015?
A)$8,100
B)$6,750
C)$6,000
D)$5,400