Bing's Export Co purchased a new delivery truck at the beginning of 2015 . 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 2015 . The truck was driven 20,000 miles during 2015 and 24,000 miles during 2016 . The number of expected miles over five years is 100,000. Refer to information
for Bing's Export 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.
d
You might also like to view...
Most longterm liabilities are related to a firm's investing activities
a. True b. False Indicate whether the statement is true or false
A CPA reviews an entity's payroll procedures. The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:
A. distributing payroll checks to employees. B. initiating requests for salary adjustments for subordinate employees. C. hiring subordinate employees. D. reviewing and approving time reports for subordinate employees.
________ is the area of accounting aimed at serving external users by providing them with general-purpose financial statements.
Fill in the blank(s) with the appropriate word(s).
The supplier is paid in full for all reasonable expenses up to a preset limit and also an additional sum as profit on the transaction in a ______ contract.
A. buyback B. quality-flexibility C. cost-plus D. fixed-price