Schager Company Purchased a Computer System on January 1, 2016

Multiple Choice

Schager Company purchased a computer system on January 1, 2016, at a cash cost of $25,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the double declining-balance depreciation method. What is the accumulated depreciation balance as of December 31, 2017?

A) $9,000.
B) $4,000.
C) $7,920.
D) $8,520.