Hubbard Company purchased a truck on January 1, 2013, at a cost of $34,000. The company estimated

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Hubbard Company purchased a truck on January 1, 2013, at a cost of $34,000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4,000.

Required:

A. Calculate depreciation expense under straight line and double declining balance for 2013-2016.

B. Which of the two methods would result in lower net income in 2013 and 2016?

Related Book For answer-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Posted Date: May 25, 2018 01:10 AM

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Hubbard Company purchased a truck on January 1, 2013, at a cost of $34,000. The company estimated

Question:

Expert Answer:

A Straightline 34000 4000 4 years 7500 Decliningb... View the full answer

Intermediate accounting

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