A Company Purchased Factory Equipment for $700000

Multiple Choice

A company purchased factory equipment for $700000. It is estimated that the equipment will have a $70000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation the amount of annual depreciation recorded for the second year after purchase would be

A) $280000.
B) $168000.
C) $252000.
D) $120960.