Wexford Co

question 65

Multiple Choice

Wexford Co.purchased a new delivery truck at the beginning of 2016.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 2016.The truck was driven 20,000 miles during 2016 and 24,000 miles during 2017.The number of expected miles over five years is 100,000.
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-Refer to information for Wexford Co. ​
By what amount would double-declining-balance depreciation exceed straight-line depreciation over the 5-year life of the truck?

• A) The salvage value of $7,000.
• B) Cost less total depreciation.
• C) Cost plus total depreciation.
• D) Total depreciation expenses under double-declining-balance and straight-line depreciation are equal.

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Definitions:

Time Investments

The allocation of time resources towards activities or goals expected to yield beneficial returns or outcomes.

Benefits Loss

The reduction or elimination of employee benefits, which can have financial and morale implications on individuals within an organization.

Attitude Change

The process of altering one's beliefs, feelings, or intended behaviors towards a person, object, or idea.

Self-esteem Levels

The degree to which a person values themselves, which can affect their confidence, behavior, and overall mental health.