Calhoun, Inc

Multiple Choice

Calhoun, Inc.purchased equipment at the beginning of 2015 for $180,000.Rose decided to depreciate the equipment over a 5-year period using the double-declining-balance method.Calhoun estimated the equipment's residual value at $30,000.Which of the following statements is correct concerning Rose's financial statements at December 31, 2015?

A) The book value of the equipment is $108,000.
B) The book value of the equipment is $72,000.
C) The total accumulated depreciation is $90,000.
D) Depreciation expense for 2015 is $60,000.