Multiple Choice
On October 1, 2014, Marshwinds Wind Turbine Company places a new asset into service. The cost of the asset is $8,000 with an estimated 5-year life and $2,000 residual value at the end of its useful life.
-What is the carrying amount of the long-lived asset on the December 31, 2014, balance sheet assuming that Marshwinds Wind Turbine Company uses the double diminishing-balance method of depreciation?
A) $5,200
B) $6,000
C) $7,200
D) $7,600
Correct Answer:
Verified
Correct Answer:
Verified
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