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.

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