Multiple Choice
Wen's Export Co. Wen's Export Co.purchased a new delivery truck at the beginning of 2013.The truck has a cost of $37,000,an estimated life of 5 years,and an estimated residual value of $7,000.A full year's depreciation expense is to be recorded in 2013.The truck was driven 20,000 miles during 2013 and 24,000 miles during 2014.The number of expected miles over five years is 100,000.
Refer to information about Wen's Export Co.
Wen's Export Co.wants to use the depreciation method that will result in the highest depreciation expense for 2013.Which method should be used?
A) straight-line
B) units-of-production
C) double-declining-balance
D) all methods create the same income in 2013
Correct Answer:
Verified
Correct Answer:
Verified
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