A New Truck Costing $50,000 with a Residual Value of $4,000

question 82

Multiple Choice

A new truck costing $50,000 with a residual value of $4,000 has an estimated useful life of five years. Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is:

• A)$20,000
• B)$12,000
• C)$18,000
• D)$7,200
• E)None of these

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Definitions:

Recent Periods

Refers to the latest or most current time frames for which data or observations are available.

Moving Averages

A forecasting method that uses an average of the n most recent periods of data to forecast the next period.

Historical Data

Information collected from past events and time periods, used for analysis, research, or projection of future trends.

Detectable Trend

A pattern or direction in data that can be identified through analysis, often indicating a significant change or development over time.