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

---

Definitions:

Government Aid

Financial assistance or resources provided by the government to individuals, organizations, or other countries, often for relief, development, or economic support.

Political Self-Interests

Actions or policies pursued by politicians or political parties based on their own advantages or benefits rather than on public welfare.

Foreign Aid

Financial or other assistance provided by one country to another, especially for development projects or to help recover from a disaster.

Multilateral Aid

Financial assistance provided by multiple governments or organizations to support development projects in other countries.