On January 1,Luke Denton Co

Multiple Choice

On January 1,Luke Denton Co.purchased a truck for $125,000 which has an estimated productive life of 100,000 miles.Its residual value is $12,500.During the first full year of its useful life,the company drove the truck 25,000 miles.Its depreciation expense for the year using the units of production method is:

A) $22,500.
B) $25,000.
C) $28,125.
D) $31,250.