A Company Paid $17,000 for a Vehicle That Had an Estimated

Multiple Choice

A company paid $17,000 for a vehicle that had an estimated useful life of 4 years,total capacity of 100,000 miles,and a residual value of $1,000.After 2 full years of using the vehicle (20,000 miles in year 1 and 27,000 miles in year 2) ,the company sold the vehicle for $6,000 and reported a loss on disposal of $3,480.What method of depreciation did the company use?

A) Units-of-production method
B) Double-declining-balance method
C) Straight-line method
D) None of the answers are acceptable