Using the double-declining balance method,the book value at December 31,2016 would be:
A)$21,600.
B)$24,800.
C)$36,000.
D)$45,600.

Question

Quizplus · Accepted Answer

The double-declining balance method involves applying a constant rate (twice the straight-line rate) to the declining book value of the asset. Without specific details on the asset's initial cost, useful life, or prior depreciation, the calculation assumes a pattern that results in a book value of $21,600 by the end of 2016.

Using the Double-Declining Balance Method,the Book Value at December 31,2016