A Company Is Depreciating a $1,000,000 Building Using a Straight-Line

Multiple Choice

A company is depreciating a $1,000,000 building using a straight-line rate of 5%.The building has an estimated residual value of $200,000.What would the amount of depreciation be in the first year using the straight-line method and the double-declining-balance method?
  Straight-line     Double-declining-balance

A) $40,000         $80,000
B) $40,000         $100,000
C) $50,000         $80,000
D) $50,000         $100,000