Choice "B" is correct. Under the double (200%) declining balance method of depreciation, depreciation expense for Year 2 is calculated as follows:

* The double-declining balance percentage is calculated as the straight-line rate times 200%: 1/10 × 200%Choice "a" is incorrect. This is the Year 2 depreciation incorrectly calculated by subtracting the salvage value from the net book value of the equipment when calculating depreciation. Under declining balance depreciation, the salvage value is not included in the computation of depreciation expense.
Choice "c" is incorrect. This is the Year 1 depreciation incorrectly calculated by subtracting the salvage value from the net book value of the equipment when calculating depreciation. Under declining balance depreciation, the salvage value is not included in the computation of depreciation expense. Additionally, this question asked for depreciation expense in Year 2, not Year 1. Watch the dates!
Choice "d" is incorrect. This is the depreciation expense to be reported in Year 1 under double-declining balance depreciation. The question asked for the depreciation expense in Year 2. Watch the dates!