Lester Company purchases a piece of equipment on Jan. 2, 2010, for $30,000 . The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000 . Lester uses a calendar fiscal year. The entry to record the amount of depreciation for 2010, using the double-declining-balance method, is:
a. Depreciation Expense– Equipment 4,500
Cash 4,500
b. Cash 5,000
Accumulated Depreciation– Equipment 5,000
c. Depreciation Expense — Equipment 5,500
Accumulated Depreciation– Equipment 5,500
d. Depreciation Expense — Equipment 7,500
Accumulated Depreciation– Equipment 7,500
D
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