The Charleston Company purchased a truck on January 1, 2010.The truck cost $36, 000 and was expected to have a residual value of $4, 000 at the end of 2017.Charleston uses the 150%-declining-balance depreciation method.What amount of depreciation should Charleston record on the truck in 2010?

A) $6, 000
B) $6, 750
C) $8, 000
D) $9, 000

150%-Declining-Balance

A method of accelerated depreciation, applying 150% of the straight-line rate to the declining balance of an asset, used to allocate larger depreciation expenses in the earlier years of an asset’s life.

Residual Value

The estimated value of an asset at the end of its useful life, often considered in leasing agreements and depreciation calculations.