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

question 9

Multiple Choice

RET Company uses the activity (units-of-production) method to depreciate long-term assets.The company owns a truck that cost $24,000.The truck is estimated to have a salvage value of $2,000 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)$6,500
• B)$6,000
• C)$5,500
• D)$5,000

---

Definitions:

Major Depressive Disorder

A psychiatric disorder characterized by a pervasive and persistent low mood accompanied by low self-esteem and loss of interest or pleasure in normally enjoyable activities.

Laxatives

Laxatives are substances that are used to stimulate bowel movements or loosen stools to facilitate easier passage, commonly used to treat constipation.

Fluid Intake

The total volume of liquid consumed by an individual, which is essential for maintaining hydration and bodily functions.

Electroconvulsive Therapy (ECT)

A psychiatric treatment in which electric currents are passed through the brain, intentionally triggering a brief seizure, to treat certain mental disorders.