An enterprise purchases a piece of equipment that has a recorded value of $1,500,000, an estimated net salvage value of $50,000, and an estimated useful life of 4 years. After applying the double-bala

An enterprise purchases a piece of equipment that has a recorded value of $1,500,000, an estimated net salvage value of $50,000, and an estimated useful life of 4 years. After applying the double-balance recurring Correct Answer: BD

Answer Explanation: The first year's depreciation is 150 × 2/4 = 750,000 yuan, the second year's depreciation is (150-75) × 2/4 = 375,000 yuan, and the third year's depreciation is (150-75 - 37.5 -5) / 2 = 162,500 (yuan). The double-declining-balance method, in the last two years, has to be turned into the annualization method

The last two years are divided equally in order to even out the depreciation.

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