Solution-What amount of depreciation expense should be

What amount of depreciation expense should be recorded

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Problem 1: ABC firm has a truck purchased 2 years ago at $175,000. The estimated residual value is $25,000. ABC drove 15,000 miles in the first year and 22,000 in the second year. It is estimated the truck has an estimated life of 300,000 miles. What amount of depreciation expense should be recorded in the second year using the activity-based method?

a. 18,500
b. 7,500
c. 11,000
d. 16,000

Reference no: EM132708896

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What amount of depreciation expense should be recorded

Reference no: EM132708896

Reference no: EM132708896

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