The cost of an asset is $1,000,000, and its residual value is $290,000. Estimated useful life of the asset is five years. Calculate depreciation for the first year using the double-declining-balance method of depreciation
A) $284,000
B) $400,000
C) $200,000
D) $142,000
B .Double-declining-balance depreciation = (Cost - Accumulated depreciation) x 2 x (1 / Useful life)
Depreciation for the first year = $1,000,000 x 2 x (1 / 5 ) = $400,000
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