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

question 95

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.
What is the amount by which double-declining-balance depreciation exceeds straight-line depreciation over the 5-year life of the truck?

• A)$ -0-
• B)$ 7,000
• C)$37,000
• D)$ 6,000

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Definitions:

Miles

A unit of measure equal to 5280 feet or about 1609 meters, commonly used to measure distances.

Second-Class Tickets

A category of tickets offering a level of service below first-class, typically at a lower cost, in transportation.

First-Class Tickets

Tickets that provide the highest level of service and amenities offered by an airline, train, or other transportation service.

Income

The total amount of money earned or received by an individual or entity from various sources.