Hubbard Company purchased a truck on January 1, 2015, 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.
Required:
A.Calculate depreciation expense under straight line and double declining balance for 2015-2018.
B.Which of the two methods would result in lower net income in 2015 and 2018?

Question

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The Answer of Hubbard Company purchased a truck on January 1, 2015, 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.
Required:
A.Calculate depreciation expense under straight line and double declining balance for 2015-2018.
B.Which of the two methods would result in lower net income in 2015 and 2018?

Hubbard Company Purchased a Truck on January 1, 2015, at a Cost