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Bing's Export Co. Bing's Export Co. Purchased a New Delivery Truck at the Truck

Question 38

Multiple Choice

Bing's Export Co.
Bing's Export Co. purchased a new delivery truck at the beginning of 2015. 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 2015. The truck was driven 20,000 miles during 2015 and 24,000 miles during 2016. The number of expected miles over five years is 100,000.
-Which method should be used?


A) Straight-line
B) Units-of-production
C) Double-declining-balance
D) All methods create the same income in 2015

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