A Truck Was Purchased for $40,000 and It Was Estimated

question 97

Multiple Choice

A truck was purchased for $40,000 and it was estimated to have a $4,000 residual value. Using the straight-line method, monthly depreciation expense of $600 was recorded. Therefore, the annual depreciation rate expressed as a percentage is

• A) 2%.
• B) 17%.
• C) 18%.
• D) 20%.

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Definitions:

Advantage

A favorable or beneficial condition, circumstance, or position that contributes to success.

Proposal

A formal offer or plan put forward for consideration or discussion by others.

Relative Ranking

A method of ordering items or values in relation to each other based on certain criteria.

Alternative Proposals

Different suggestions or plans put forward as options to consider for solving a problem or making a decision.