Multiple Choice
Decorama Corp.bought a delivery van for $65,000 with a estimated residual value of $6,000.The van is expected to be used for the next 10 years.The company estimates it will be used to drive a total of 225,000,000 km (30,000 km in the first year,25,000 in the second,third and fourth years and 20,000 in the next six years. What would be the amount of depreciation expense in year 2 using the double-declining-balance method of depreciation?
A) $6,500.00
B) $5,900.00
C) $10,400.00
D) $6,555.55
Correct Answer:
Verified
Correct Answer:
Verified
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