Equipment with a Cost of $160 000 Has an Estimated

Multiple Choice

Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. The equipment is to be depreciated by the reducing balance method (at twice the straight-line rate) . What is the amount of depreciation for the first full year?

A) $40 000
B) $75 000
C) $80 000
D) $85 000