A Truck Costs $9,200 with a Residual Value of $1,000

Multiple Choice

A truck costs $9,200 with a residual value of $1,000. It is estimated that the useful life of the truck is four years. The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is:

A) $2,300
B) $4,600
C) $3,200
D) $6,400
E) None of these