A New Truck Costing $50,000 with a Residual Value of $4,000

question 82

Multiple Choice

A new truck costing $50,000 with a residual value of $4,000 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)$20,000
• B)$12,000
• C)$18,000
• D)$7,200
• E)None of these

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Definitions:

Goggles

Protective eyewear that guards the area surrounding the eyes to prevent particulates, water, or chemicals from striking the eyes.

Immunizations

The process of making a person immune or resistant to an infectious disease, often by the administration of vaccines.

(Chemical) Irritants

Substances that can cause inflammation or discomfort to bodily tissues upon contact, often leading to pain, swelling, or redness.

Caustic Burns

Tissue damage caused by contact with chemical substances that are acidic or alkaline.