On January 1, Year 1, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. The book value of the truck at the end of Year 1, assuming that Friedman uses the double-declining-balance method, is:

The answer is $36,000

Explanation:

First we need to determine the rate to be used.

To determine the rate:

100percent/8 years

12.5%

Double rate is 12.5% x 2

=25%. This is the rate to be used.

Cost of the truck is $48,000

First year depreciation is:

25% x $48,000

So first year depreciation is $12,000

Book value of the truck at the end of year 1 is $48,000 - $12,000

=$36,000

the correct option is c

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!