A Truck Costs $35,000 with a Residual Value of $2,000

Multiple Choice

A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the declining-balance method at twice the straight-line rate, the book value at the end of year 2 is:

A) $35,000
B) $22,000
C) $12,600
D) $33,000
E) None of these