Multiple Choice
TER Company uses the activity (units-of-production) method to depreciate long-term assets.The company owns a truck that cost $48,000.The truck is estimated to have a salvage value of $4,000 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) $13,000
B) $12,000
C) $11,000
D) $10,000
Correct Answer:
Verified
Correct Answer:
Verified
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