Wexford Co

question 32

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. ​
What is the amount by which double-declining-balance depreciation exceeds straight-line depreciation over the 5-year life of the truck?

• A) $ -0-
• B) $ 7,000
• C) $37,000
• D) $ 6,000

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Definitions:

Product-Line Pricing

Setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.

Discount Pricing

A marketing strategy where products or services are offered at a reduced price to stimulate demand or attract customers.

Bundle Pricing

A pricing strategy where multiple products or services are packaged together and sold at a single price.

BOGOs

An acronym for "Buy One, Get One" sales promotions, where a customer gets a second item for free or at a reduced price after purchasing one at regular price.