A Company Bought a Piece of Equipment for $40,000 and Expects

Multiple Choice

A company bought a piece of equipment for $40,000 and expects to use it for eight years.The company then plans to sell it for $3,500.The company has already recorded depreciation of $35,995.Using the double-declining-balance method,what is the company's annual depreciation expense for the upcoming year?

A) $1,001
B) $9,125
C) $505
D) $10,000