A Truck Costs $300,000, and Is Expected to Run 100,000

question 51

Multiple Choice

A truck costs $300,000, and is expected to run 100,000 miles during its 5-year life. Residual value is expected to be zero because the truck was used when acquired. If the truck runs 24,000 miles the first year, how much depreciation should the company record under the units-of-production method?

• A)$85,000
• B)$24,000
• C)$72,000
• D)$47,000

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Definitions:

Toxoplasmosis

An infection caused by the Toxoplasma gondii parasite, often transmitted through contaminated food or from animals to humans, particularly from cats.

Placenta

An organ that develops in female mammals during pregnancy, providing oxygen and nutrients to and removing waste from the developing fetus.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically occurring before the 20th week of gestation.

Oocyte Membrane

The outer covering of an oocyte, or egg cell, that regulates the entry and exit of substances.