Multiple Choice
Falling Leaves Lawn Care
This company purchased new excavating equipment at the beginning of 2019. The equipment has a cost of $37,000, an estimated life of 5 years, and an estimated residual value of $7,000. A full year's depreciation expense is to be recorded in 2019. The equipment was used 20,000 hours during 2019 and 24,000 hours during 2020. The number of expected hours over 5 years is 100,000.
-Refer to Falling Leaves Lawn Care. What is the amount by which double-declining-balance depreciation exceeds straight-line depreciation over the 5-year life of the equipment?
A) $ -0-
B) $ 7,000
C) $37,000
D) $ 6,000
Correct Answer:
Verified
Correct Answer:
Verified
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