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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