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Aggie, Inc. Aggie, Inc. Purchased a Truck at a Cost of $12,000

Question 84

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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.
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Refer to Aggie, Inc.'s information presented above, if Aggie uses the double-declining-balance depreciation method, what amount is the depreciation expense for 2012?


A) $4,800
B) $2,880
C) $1,728
D) $2,000

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