Question 34
Archie Co. purchased a framing machine for $40,000 on January 1, 2021. The machine is expected to have a four-year life, with a residual value of $5,000 at the end of four years.
Using the double-declining-balance method, depreciation for 2021 and book value at December 31, 2021, would be:
$22,500 and $22,500 respectively.
$20,000 and $20,000 respectively.
$22,500 and $17,500 respectively.
$20,000 and $25,000 respectively.