1. Aggie, inc. purchased a truck at a cost of $12,000. the truck has an estimate salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2011, and was used 27,000 hours in 2011 and 26,000 hours in 2012. What method of depreciation will maximize depreciaton expence in 2011?

a. Straight-line

b. double-declining-balance

c. units-of-activity

d. all methods produce the same expence in 2011.

2. Aggie, inc. purchased a truck at a cost of $12,000. the truck has an estimate salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2011, and was used 27,000 hours in 2011 and 26,000 hours in 2012. If Aggie uses the units-of-activity method. what is the depreciation rate per hour for the equipment?

a. $1.00

b. $1.10

c. $.10

d. $.12