Bing's Export Co. Bing's Export Co.purchased a New Delivery Truck at the Beginning

question 120

Multiple Choice

Bing's Export Co.
Bing's Export Co.purchased a new delivery truck at the beginning of 2015.The truck has a cost of $37,000, an estimated life of 5 years, and an estimated residual value of $7,000.A full year's depreciation expense is to be recorded in 2015.The truck was driven 20,000 miles during 2015 and 24,000 miles during 2016.The number of expected miles over five years is 100,000.
-Refer to information for Bing's Export Co.
By what amount would double-declining-balance depreciation exceed straight-line depreciation over the 5-year life of the truck?

• A)The salvage value of $7,000.
• B)Cost less total depreciation.
• C)Cost plus total depreciation.
• D)Total depreciation expenses under double-declining-balance and straight-line depreciation are equal.

---

Definitions:

Loyal Customers

Individuals who repeatedly purchase products or services from the same brand or company, often due to positive experiences or satisfaction.

Restructuring

The act of organizing something, such as a company or system, differently in order to make it operate more effectively.

Turnaround

The process of implementing significant changes in a company to address financial or operational issues and improve performance and profitability.

Multidomestic Strategy

A strategy that customizes products and advertising to best fit local needs.