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

question 117

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 about Bing's Export Co.
Bing's Export Co.wants to use the depreciation method that will result in the highest depreciation expense for 2015.Which method should be used?

• A)straight-line
• B)units-of-production
• C)double-declining-balance
• D)all methods create the same income in 2015

Understand the purpose and process of preparing closing entries in adjusting and closing the accounting cycle.

Grasp the concept and execution of transferring income or loss to owner's equity.

Comprehend the process of adjusting entries and the effects on the adjusted trial balance.

Learn how to prepare a post-closing trial balance and its significance.

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Definitions:

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to build-up of plaque in the arteries of the heart.

Percent

A mathematical term representing a part per hundred, used to describe proportions, ratios, or fractions in terms of hundredths.

Deaths

The act of dying; the end of life; the total and permanent cessation of all the vital functions of an organism.

Culturally-Modified

Adjustments made to interventions, practices, or assessments to make them more relevant and effective in specific cultural contexts.