Paul Hauling Has a Fleet of 10 Large Trucks That

question 72

Multiple Choice

Paul Hauling has a fleet of 10 large trucks that cost a total of $1,410,000.The fleet is expected to provide 1,000,000 miles of transportation during an estimated 10-year life,and be sold for 10% of the original cost at the end of that time.If the fleet traveled 125,000 miles in the current twelve-month period,what would be the depreciation expense under the straight-line (SL) and units-of-production (UoP) methods?

• A)SL = $158,625 & UoP = $141,000
• B)SL = $141,000 & UoP = $158,625
• C)SL = $126,900 & UoP = $176,250
• D)SL = $126,900 & UoP = $158,625

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