City View Limousine Depreciates Its Stretch Hummer Using the Units-Of-Production

question 243

Multiple Choice

City View Limousine depreciates its stretch Hummer using the units-of-production depreciation method and bases usage on the miles driven per year.The estimated useful life of the vehicle is 250,000 miles.The vehicle was purchased for $115,000 and is not expected to have any residual value at the end of its life.It was driven a total of 40,000 miles during the first year of its useful life and 25,000 miles during the second year.What is the amount of Accumulated Depreciation recorded on the vehicle at the end of those two years?

• A)$70,769
• B)$29,900
• C)$46,000
• D)$18,400

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations, or provide services that are either difficult to manage or outside the core competencies of the hiring company.

IT Gap

The discrepancy between an organization's current information technology capabilities and the technology needed to achieve its goals or meet demand.

Integrate IT Systems

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Shippers and Service Providers

Businesses involved in the transportation of goods (shippers) and those offering logistical services (service providers).