On April 1, 2022, Check Mate Ltd

Multiple Choice

On April 1, 2022, Check Mate Ltd.places a new asset into service.The cost of the asset is $40,000 with an estimated 8-year life and $2,500 residual value.Assuming that Check Mate uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2022?

A) $32,500
B) $30,625
C) $38,125
D) $35,000