TER Company Uses the Activity (Units-Of-Production)method to Depreciate Long-Term Assets

question 183

Multiple Choice

TER Company uses the activity (units-of-production) method to depreciate long-term assets.The company owns a truck that cost $48,000.The truck is estimated to have a salvage value of $4,000 and a useful life of 200,000 miles.How much depreciation expense would be reported on the income statement in a year in which the truck is driven 50,000 miles?

• A)$13,000
• B)$12,000
• C)$11,000
• D)$10,000

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Definitions:

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth; can also refer to the cell's control center that houses DNA.

Neuron

A basic unit of the nervous system that transmits electrical and chemical signals in the body.

Acute Stress

A form of stress that is brief and related to specific events or situations, often perceived as within one's coping abilities.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by triggering the fight-or-flight response.