Beckman Enterprises Purchased a Depreciable Asset on October 1, Year

Multiple Choice

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be:

A) $54,000
B) $90,000
C) $16,000
D) $36,000
E) $42,000