RET Company Uses the Activity (Units-Of-Production)method to Depreciate Long-Term Assets

Multiple Choice

RET Company uses the activity (units-of-production) method to depreciate long-term assets.The company owns a truck that cost $24,000.The truck is estimated to have a salvage value of $2,000 and a useful life of 200,000 miles.How much depreciation expense would be reported on the income statement in a year in which the truck is driven 50,000 miles?

A) $6,500
B) $6,000
C) $5,500
D) $5,000