Answer:
$160,000
Explanation:
To calculate the depreciation value using the double declining balance method we should only consider the purchase cost of the equipment and not the salvage value.
$200,000 / 10 years = $20,000 per year
Since we use the double declining balance method the depreciation for year 1 will be $20,000 x 2 = $40,000
So the book value at the end of year 1 will be $160,000 (= $200,000 - $40,000).
