Norwood, Inc. Norwood, Inc. Purchased a Crane at a Cost of $80,000

question 203

Multiple Choice

Norwood, Inc.

Norwood, Inc. purchased a crane at a cost of $80,000. The crane has an estimated residual value of $5,000 and an estimated life of eight years, or 12,500 hours of operation. The crane was purchased on January 1, 2017, and was used 2,700 hours in 2017 and 2,600 hours in 2018.

-Refer to the information for Norwood,Inc.
Based on this information,what method of depreciation will produce the maximum depreciation expense in 2017?

• A)Straight-line
• B)Double-declining-balance
• C)Units-of-production
• D)All methods produce the same expense in 2017.

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