FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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16. $
During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in
year 2, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the
truck has an estimated life of 5 years or 500,000 miles, with an estimated residual value of $40,000, what amount
of depreciation expense should the company record in the second year using the activity-based method?
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Transcribed Image Text:16. $ During the first two years, the company drove the truck 103,000 in year 1 and 101,000 miles in year 2, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 5 years or 500,000 miles, with an estimated residual value of $40,000, what amount of depreciation expense should the company record in the second year using the activity-based method?
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