A New Truck Costing $50,000 with a Residual Value of $4,000

Multiple Choice

A new truck costing $50,000 with a residual value of $4,000 has an estimated useful life of five years. Using the declining-balance method at twice the straight-line rate, the depreciation expense in year 2 is:

A) $20,000
B) $12,000
C) $18,000
D) $7,200
E) None of these