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. Refer to information for

Wexford 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

Business

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