Wen's Export Co. Wen's Export Co.purchased a new delivery truck at the beginning of 2013.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 2013.The truck was driven 20,000 miles during 2013 and 24,000 miles during 2014.The number of expected miles over five years is 100,000.
Refer to information about Wen's Export Co.
Wen's Export Co.wants to use the depreciation method that will result in the highest depreciation expense for 2013.Which method should be used?

Question

Quizplus · Accepted Answer

The double-declining-balance method results in the highest depreciation expense in the early years of an asset's life, so it would be the best choice for Wen's Export Co. to achieve their goal of the highest depreciation expense for 2013.