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For this purpose, storage bins were welded to the truck bed at a cost of $1,700. Doug Lombardi, controller of Ott , estimates the useful life of the truck to be5 years and the residual value to be $1,000. Using the double-declining balance method, the depreciation expense on the truck for its second year of use is ?
A. $9,024
B. $9,264
C. $9,432
D. $9,672
for double-declining-balance method multiply the Dep. % by25 years =20% Dep. 20% x2 =40 % for the first year38,600 x40% =15,440 Second year23,160 (36,600-15,440) x40% =9,264 Answer b.
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