Costco purchased a truck from a company going out of businessfor $40,000. An appraisal indicated the fair value of the truck tobe $42,000. Costco estimated the truck would provide futurebenefits for 3 years and would bring an $8,800 residual value atthe end of the 3-year period.
How much is the depreciation expense for the second year if thecompany uses the double- declining-balance method?
