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On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years.
On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 19,000 miles. Nick uses the double-declining balance method of depreciation.
What amount of depreciation expense should Nick record for the first year?
A- 5800
b- 11020
c-11600
d-12000
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