Battle Co.purchased a new truck for $36, 000 on June 1, 2010, with a useful life of eight years and a residual value of $4, 800.If the company used double-declining-balance depreciation computed to the nearest whole year, depreciation expense for 2011 was

A) $6, 750.00
B) $7, 687.50
C) $5, 250.00
D) $5, 850.00

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, allowing more depreciation in the earlier years of an asset’s life.

Depreciation Expense

The portion of an asset's cost allocated over its useful life to account for its decline in value over time.

Useful Life

The duration over which an asset is expected to be economically viable and useful to the owner.