Only Organics Has a Delivery Truck That Was Purchased for $48,000

question 92

Multiple Choice

Only Organics has a delivery truck that was purchased for $48,000 and has a salvage value of $4,000. It expects the truck to last 200,000 miles. During Year 1, the truck traveled 32,500 miles and during Year 2, the truck traveled 29,500 miles. What is the depreciation expense for Year 2 to the nearest dollar using the units-of-production method? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

• A)$7,150
• B)$7,080
• C)$7,800
• D)$6,490

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Definitions:

Maintenance Activities

Support the emotional life of the team as an ongoing social system.

Intergroup Competition

The rivalry between different groups or teams, used as a strategy to boost motivation or performance by fostering a sense of competition.

Internal Loyalty

Devotion and commitment an employee feels towards their organization or team, often resulting in increased motivation, productivity, and a willingness to go above and beyond.

Disruptive Entrants

New players in an industry that challenge and change the traditional dynamics through innovative business models or technology.