Beckman Enterprises purchased a depreciable asset on October 1,Year 1 at a cost of $100,000.The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life.If the asset is depreciated on the double-declining-balance method,the asset's book value on December 31,Year 2 will be:

A) $36,000
B) $42,000
C) $54,000
D) $16,000
E) $90,000

The double-declining-balance method depreciates an asset by an annual rate that is twice as high as the straight-line method. The formula used for double-declining-balance depreciation is:

Depreciation Expense = Beginning Book Value x 2 / Useful Life

For this asset, the depreciation expense for Year 1 would be:

Depreciation Expense = $100,000 x 2 / 5 = $40,000

The book value of the asset at the end of Year 1 would be:

Book Value = $100,000 - $40,000 = $60,000

Using the same formula, the depreciation expense for Year 2 would be:

Depreciation Expense = $60,000 x 2 / 5 = $24,000

The book value of the asset on December 31, Year 2 would be:

Book Value = $60,000 - $24,000 = $36,000

Therefore, the best choice is C.