Answer:
The correct answer is C.
Explanation:
Giving the following information:
Purchasing price= $57,000
Useful life= five-year
Residual value= $5,700.
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(57,000 - 5,700)/5]
Annual depreciation= $20,520
Book value= 57,000 - 20,520
Book value= $36,480
