On January 1,2016 Dinwiddie Company Purchased a Car That Cost

question 26

Multiple Choice

On January 1,2016 Dinwiddie Company purchased a car that cost $45,000.The car had an expected useful life of 6 years and a $10,000 salvage value.Based on this information alone:

• A)The total amount of depreciation expense recognized over the six year useful life will be greater under the double declining balance method than the straight-line method.
• B)The amount of depreciation expense recognized in 2019 would be greater if Dinwiddie depreciates the car under the straight-line method than if the double declining balance method is used.
• C)At the end of 2018,the amount in accumulated depreciation account will be less if the double declining balance method is used than it would be if the straight-line method is used.
• D)None of these statements is true.

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Definitions:

Social Responsibility

The ethical framework that suggests an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.

Utilitarianism

An ethical theory that states that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Moral Philosophy

The study of values and principles that guide decisions about what is right and wrong, often focusing on questions of justice, rights, and ethics.

Social Responsibility

The commitment of businesses to contribute to sustainable economic development while improving the quality of life for their workforce, their families, the local community, and society at large.