A Company Bought a Piece of Equipment for $40,000,expecting to Use

Multiple Choice

A company bought a piece of equipment for $40,000,expecting to use it for eight years.The company then plans to sell it for $3,500.The company has already recorded amortization of $35,995.Using the double-declining-balance method,the company's annual amortization expense for the upcoming year would be:

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