单选题
At the stag of the year, a company acquired new equipment at a cost of €50,000, estimated to have a three-year life and a residual value of €5,000. If the company depreciates the asset using the double declining balance method, the depreciation expense that the company will report for the third year is closest to:
【正确答案】
B
【答案解析】
Under the double declining balance method, the depreciation rate is 2 x Straight line rate. The straight line rate is 33.3% (i.e.,1/3 years), so the double declining rate is 66.6%, or two-thirds depreciation rate per year. But the asset should not be depreciated below its assumed residual value in any year.
