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Question 2

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Use the following information to answer questions
On January 1, 2010, Run & Go Pizza purchased a delivery truck for $50,000. The truck has a $5,000 salvage value and a four-year (or 56,250 miles) useful life. During 2010, the company put 15,750 miles on the delivery truck.
-If Run & Go uses the units-of-production method, how much depreciation expense should Run & Go recognize in 2010?


A) $ 8,000
B) $ 9,000
C) $11,250
D) $12,500
E) $12,600

Correct Answer:

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