Double-declining-balance method-production method

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Reference no: EM131296387

Preston Corporation purchased a truck for $40,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $4,000 at the end of that time. During the second year, the truck was driven 27,500 miles. What would the company record as Depreciation for the second year under each of the following methods:

Production method:

a. $9,000.00

b. $9,900.00

c. $10,000.00

d. None of the above

Double-declining-balance method:

a. $9,000.00

b. $9,900.00

c. $10,000.00

d. None of the above

PLEASE SHOW WORK FOR BOTH

Reference no: EM131296387

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