A New Truck Costing $60,000 with a Residual Value of $6,000

question 68

Multiple Choice

A new truck costing $60,000 with a residual value of $6,000 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)$24,000
• B)$14,000
• C)$14,400
• D)$2,400
• E)None of these

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