Paul Hauling Has a Fleet of 10 Large Trucks That

Multiple Choice

Paul Hauling has a fleet of 10 large trucks that cost a total of $1,410,000.The fleet is expected to provide 1,000,000 miles of transportation during an estimated 10-year life,and be sold for 10% of the original cost at the end of that time.If the fleet traveled 125,000 miles in the current twelve-month period,what would be the depreciation expense under the straight-line (SL) and units-of-production (U-of-P) methods?

A) SL = $158,625 and U-of-P = $141,000.
B) SL = $141,000 and U-of-P = $158,625.
C) SL = $126,900 and U-of-P = $176,250.
D) SL = $126,900 and U-of-P = $158,625.