Norwood, Inc.
Norwood, Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation.The crane was purchased on January 1, 2015 and was used 2,700 hours in 2015 and 2,600 hours in 2016.
-Refer to the information for Norwood, Inc.
Based on this information, what method of depreciation will produce the maximum depreciation expense in 2015?

Question

Quizplus · Accepted Answer

The double-declining-balance method accelerates depreciation, resulting in higher depreciation expense in the earlier years compared to other methods.

Norwood, Inc. Norwood, Inc.purchased a Crane at a Cost of $80,000.The Crane