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

question 46

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.
-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

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Definitions:

Positive Integers

Whole numbers greater than zero, found to the right of zero on the number line.

Difference

The result of subtracting one number from another to show the gap or distance between them.

Substitution

A method used in algebra and calculus involving replacing a variable with its corresponding value or another expression to simplify or solve an equation.

Equations

Mathematical statements asserting the equality between two expressions.