The cost of an asset is $ 1,020,000 , and its residual value is $ 100,000. The estimated useful life of the asset is ten years. Calculate depreciation for the first year using the two minus declining minus balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

a. $ 204.000

b. $ 92.000

c. $ 102. 000

d. $ 184.000

Option (a) $204,000

Explanation:

Data provided in the question:

Cost of the asset = $1,020,000

Residual value = $100,000

Useful life = 10 years

Now,

Using the 2-declining-balance method of depreciation

The rate of annual depreciation = 2 * [ 1 : Useful life ]

= 2 * [ 1 : 10 ]

= 0.20

Therefore,

Depreciation for the first year = Cost * Rate of depreciation

= $1,020,000 * 0.20

= $204,000

Hence,

Option (a) $204,000