On the first day of its fiscal year, Solstice Company purchased a new computer system for a total cost of $30,000. The computer system is expected to have a life of 5 years with a residual value of $6,000. If the company uses the double-declining-balance method, its depreciation expense for this computer system in the first year will be:

A. $12,000.
B. $9,600.
C. $4,800.
D. $6,000.

Answer rating: 100% (QA)

SOLUTION Answer Option D 6000 Working Note Straight line ... View the full answer