Sure Company Purchased a Machine on January 1, 20A, at a Cash

Multiple Choice

Sure Company purchased a machine on January 1, 20A, at a cash cost of $12,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the declining-balance method based on a 150 percent acceleration rate. What will be the depreciation expense for the second year?

A) $1,800
B) $900
C) $1,350
D) $1,530