Hubbard Company purchased a truck on January 1,2009,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.
Requirements:
A.Calculate depreciation expense under straight line and double declining balance for 2009-2012.
B.Which of the two methods would result in lower net income in 2010 and 2012?

Question

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The Answer of Hubbard Company purchased a truck on January 1,2009,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.
Requirements:
A.Calculate depreciation expense under straight line and double declining balance for 2009-2012.
B.Which of the two methods would result in lower net income in 2010 and 2012?

Hubbard Company Purchased a Truck on January 1,2009,at a Cost