Aggie, Inc Aggie, Inc purchased a truck at a cost of $12,000. The truck has an estimated salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2011, and was used 27,000 hours in 2011 and 26,000 hours in 2012. Refer to Aggie, Inc's information presented above, what method of depreciation will maximize depreciation expense in
2011?
A) Straight-line
B) Double-declining-balance
C) Units-of-activity
D) All methods produce the same expense in 2011.
B
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