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Luray Company Purchased a New $40,000 Truck on January 1

Question 108

Multiple Choice

Luray Company purchased a new $40,000 truck on January 1, 2012. The truck was expected to last 4 years and have no salvage value. During 2013, Loray's depreciation expense on the truck was $12,000. Which of the following depreciation methods is Loray Company using to depreciate the truck?


A) Sum-of-the-years'-digits
B) Double-declining-balance
C) 150-percent-declining balance
D) Straight-line

Correct Answer:

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