On January 1,2016,Friedman Company purchased a truck that cost $48,000.The truck had an expected useful life of 8 years and an $8,000 salvage value.The book value of the truck at the end of 2016,assuming that Friedman uses the double declining balance method,is:

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The double declining balance method involves depreciating the asset at twice the straight-line rate. The straight-line rate is 1/8 = 12.5%, so the double rate is 25%. The first year's depreciation is 25% of $48,000, which is $12,000. The book value at the end of 2016 is $48,000 - $12,000 = $36,000.

On January 1,2016,Friedman Company Purchased a Truck That Cost $48,000