Hubbard Company purchased a truck on January 1, 2013, at a cost of $34,000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4,000.
Required:
A. Calculate depreciation expense under straight line and double declining balance for 2013-2016.
B. Which of the two methods would result in lower net income in 2013 and 2016?

Question

Quizplus · Accepted Answer

The Answer of Hubbard Company purchased a truck on January 1, 2013, at a cost of $34,000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4,000.
Required:
A. Calculate depreciation expense under straight line and double declining balance for 2013-2016.
B. Which of the two methods would result in lower net income in 2013 and 2016?

Hubbard Company Purchased a Truck on January 1, 2013, at a Cost