1. When double-declining balance depreciation is used for the recognition of depreciation expense, the statement of cash flows will show an outflow from

a- operating activity.

b- investing activity.

c- financing activity.

d- None of the answers is correct.

2. On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of depreciation expense recognized on the Year 3 income statement is

a- $4,000.

b- $6,000.

c- $12,000.

d- $24,000.

3. On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of accumulated depreciation shown on the Year 3 balance sheet is

a- $24,000.

b- $36,000.

c- $40,000.

d- $42,000.

4. On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of book value shown on the Year 3 balance sheet is

a- $6,000.

b- $8,000.

c- $12,000.

d- $24,000.