Jeremiah Co

Multiple Choice

Jeremiah Co. purchased a machine on January 1, 2017 for $22,500. The machine had an estimated useful life of 10 years and an estimated residual value of $2,500. The company uses double-declining-balance depreciation. Assuming Jeremiah Co. uses straight-line depreciation, what would be the book value of the machine on December 31, 2021?

A) $ 0
B) $2,000
C) $2,250
D) $2,500