A Truck Costs $316,000 and Is Expected to Be Driven

question 188

Multiple Choice

A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life.Residual value is expected to be zero.If the truck is driven 27,000 miles during the first year,how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) $98,600
• B) $24,480
• C) $73,440
• D) $44,440

---

Definitions:

Rival In Consumption

A term indicating that the consumption of a good or service by one person diminishes the ability of another person to consume the same good or service.

Tragedy

Tragedy is a form of drama based on human suffering that invokes an accompanying catharsis or pleasure in audiences.

Excessive Use

The overuse or misuse of a resource or product, often leading to depletion or damage of the resource and negative externalities.

Common Resources

Natural or man-made resources that are not owned by anyone, cannot be excluded from use, and are available for use by more than one person.