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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...

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