Thomas Enterprises Purchased a Depreciable Asset on October 1, Year

Multiple Choice

Thomas Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a residual value of $15,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's carrying amount on December 31, Year 3 will be:

A) $27,540
B) $21,600
C) $32,400
D) $18,360
E) $90,000