On January 1, Simon Coro. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 25,000 miles. Nick uses the double-declining balance method of depreciation. Noting that DDB ignores salvage value until the final year of depreciation, What amount of depreciation expense should Nick record for the first year? a. $5,800 b. $11,020 c. $11,600 d. $12,000
On January 1, Simon Coro. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 25,000 miles. Nick uses the double-declining balance method of depreciation. Noting that DDB ignores salvage value until the final year of depreciation, What amount of depreciation expense should Nick record for the first year? a. $5,800 b. $11,020 c. $11,600 d. $12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Simon Coro. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 25,000 miles. Nick uses the double-declining balance method of
What amount of depreciation expense should Nick record for the first year?
a. $5,800
b. $11,020
c. $11,600
d. $12,000
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