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Question - On January 1 of Year 1, Harry Company purchased a piece of equipment for $200,000. The estimated life is 10 years. Harry estimates that the equipment can be sold for $60,000 at the end of its life. (Double declining balance depreciation). For year 2, Harry Company's net income is 100,000. What would have been Harry's Company's net income been in Year 2 assuming that Harry had initially decided not to use double declining balance depreciation, but had used straight line depreciation.
A. 132,000
B. 188,000
C. 86,000
D. 64,000
E. 104,000
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