The Raleigh Corporation buys a building on January 1, Year One for $900,000. The building is expected to last for 10 years and have no salvage value. The double-declining balance method is used for depreciation purposes. The half-year convention is not used. Early in Year Three, company officials decide to switch to the straight-line method of depreciation. What amount of depreciation expense should the company now recognize on its Year Three income statement?

a. $57,600

b. $62,400

c. $72,000

d. $90,000

Answer rating: 100% (QA)

Option c is a correct answer Explanation Initial value 900000 Less Depreciat... View the full answer