A Utility Vehicle Purchased by Knox Industries Should Last 110,000

question 11

Multiple Choice

A utility vehicle purchased by Knox Industries should last 110,000 miles. The acquisition cost was $21,400 and the salvage value is $1,926. Using the UOP depreciation method, given the annual usage information, calculate the accumulated depreciation at the end of year 2. (Round all dollar amounts to the nearest cent) $$\begin{array} { l l l l } \text { YEAR } & \text { MILES } & \text { YEAR } & \text { MILES } \\\hline 1 & 22,029 & 2 & 22,724 \\3 & 23,420 & 4 & 23,188\end{array}$$

• A) $7,922.99
• B) $4,090.32
• C) $13,344.46
• D) $4,215.60

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Definitions:

Implied Trust

A trust formed by the law from the conduct or circumstances of the parties involved, rather than by explicit written agreement.

Created

Brought into existence or formed out of nothing.

Testamentary Capacity

The legal ability of a person to make a valid will, usually involving being of sound mind and of certain age.

Testator

An individual who has made a will or testament in which they name one or more persons to manage their estate and provide for the transfer of their property at death.