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

question 85

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)Units-of-production method in year 1 and straight-line in year 2.

---

Definitions:

Oxygen

A chemical element with the symbol O, essential for most forms of life and known for its role in combustion and respiration.

MgO

Magnesium oxide, a white hygroscopic solid mineral that is used as a refractory material, in medication, and as a magnesium source in animal feeds.

Oxidation Number

A concept in chemistry that represents the degree of oxidation of an atom in a chemical compound, indicating the number of electrons lost or gained by an atom.

Oxidation Number

A number assigned to an atom in a chemical compound that represents the number of electrons lost or gained by the atom.