On January 1,2010,Wasson Company Purchased a Delivery Vehicle Costing $40,000

Multiple Choice

On January 1,2010,Wasson Company purchased a delivery vehicle costing $40,000.The vehicle has an estimated 6-year life and a $4,000 residual value.Wasson estimates that the vehicle will be driven 100,000 miles.What is the vehicle's book value as of December 31,2011 assuming Wasson uses the units-of-production depreciation method and the vehicle was driven 10,000 miles during 2010 and 18,000 miles during 2011?

A) $29,920
B) $28,800
C) $24,800
D) $25,920