Fabian Woodworks This company purchased a truck at a cost of $12,000.The truck has an estimated residual value of $2,000 and an estimated life of 5 years,or 100,000 hours of operation.The truck was purchased on January 1,2012,and was used 27,000 hours in 2012 and 26,000 hours in 2013.
-Refer to Fabian Woodworks.Based on the information presented above,what method of depreciation will maximize depreciation expense in 2013?
A) Straight-line
B) Double-declining-balance
C) Units-of-production
D) All methods produce the same expense in 2013.
Correct Answer:
Verified
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