Paul Hauling Has a Fleet of 10 Large Trucks That

question 5

Multiple Choice

Paul Hauling has a fleet of 10 large trucks that cost a total of $1,410,000. The fleet is expected to provide 1,000,000 miles of transportation during an estimated 10-year life, and be sold for 10% of the original cost at the end of that time. If the fleet traveled 125,000 miles in the current twelve-month period, what would be the depreciation expense under the straight-line (SL) and units-of-production (U-of-P) methods?

• A) SL = $158,625 & U-of-P = $141,000
• B) SL = $141,000 & U-of-P = $158,625
• C) SL = $126,900 & U-of-P = $176,250
• D) SL = $126,900 & U-of-P = $158,625

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Definitions:

Breadth of Product Line

The range and variety of products a company offers within its product line.

Retailing Mix

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.

Full-Service

Businesses or service providers that offer a comprehensive range of solutions and support, covering all the needs in a specific area without requiring the client to go elsewhere.

Personal Shopping Services

Services offered by individuals or companies to help customers make purchases based on the customers' needs, preferences, and budget.