Aggie, Inc. Aggie, Inc. Purchased a Truck at a Cost of $12,000

question 79

Multiple Choice

Aggie, Inc.
Aggie, Inc. purchased a truck at a cost of $12,000. The truck has an estimated salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2011, and was used 27,000 hours in 2011 and 26,000 hours in 2012.
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Refer to Aggie, Inc.'s information presented above, what method of depreciation will maximize depreciation expense in 2011?

• A) Straight-line
• B) Double-declining-balance
• C) Units-of-activity
• D) All methods produce the same expense in 2011.

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Definitions:

Motor Cortex

An area of the cerebral cortex involved in planning, controlling, and executing voluntary movements.

Phantom Limb Pain

Pain or discomfort felt in an area that has been amputated, where the brain continues to receive messages from nerves originally serving the missing limb.

Amputation

The surgical removal of a limb or extremity of the body, often performed to remove diseased tissue or relieve pain.

Cortex's Response

Describes the reaction or activity in the cerebral cortex of the brain in response to a stimulus or situation.