QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

51. At the start of the year, a company acquired new equipment at a cost of €50,000,

estimated to have a 3 year life and a residual value of €5,000. If the company depreciates

the asset using the double declining balance method, the depreciation expense that the

company will report for the third year is closest to:

A. €555.

B. €3,328.

C. €3,705.

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