Use the Information Below to Answer the Following Questions

question 27

Multiple Choice

Use the information below to answer the following questions.
Speedy Ltd purchased a delivery truck on 1 July 2010 for $450 000. It had an estimated salvage value of $150 000. The estimated number of kilometers to be driven was 150 000. The truck was depreciated using the units-of-production method. Speedy Ltd’s financial period ends on 31 December. The truck was driven the following distances: during 6 months to 31 December 2010, 25 000 km; during 12 months to 31 December 2011, 75 000 km; and during 12 months to 31 December 2012, 40 000 km.
-What was the balance of accumulated depreciation at 31 December 2011?

• A) $300 000
• B) $280 000
• C) $80 000
• D) $230 000

---

Definitions:

MSB

Marginal Social Benefit, referring to the additional benefit to society as a whole from consuming one more unit of a good.

MSC

MSC, or Marginal Social Cost, is the total cost to society of producing one additional unit of a good or service, including both private costs and externalities.

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on living organisms and ecosystems.

Emissions Tax

An emissions tax is designed to reduce environmental harm by charging a fee for the emission of pollutants, incentivizing businesses and individuals to decrease their environmental impact.