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

Short Answer

A company is amortizing 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 amortization be in the first year using the straight-line method and the double-declining balance method? $\begin{array}{lll}&\text { Straight-line }&\text {Double-declining balance }\\\hline\text { a. } & \$ 40,000 & \$ 80,000 \\\text { b. } & \$ 40,000 & \$ 100,000 \\\text { c. } & \$ 50,000 & \$ 80,000 \\\text { d. } & \$ 50,000 & \$ 100,000\end{array}$