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AveGali [126]
3 years ago
6

During the first two years, supplies, inc. drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise

to its customers. the company originally purchased the truck for $175,000. if the truck has an estimated life of 10 years or 300,000 miles, with an estimated residual value of $25,000, what amount of deprecation expense should supplies, inc. record in the second year using the activity-based method?
Business
1 answer:
Masja [62]3 years ago
3 0
$175,000-$25,000=$150,000
$150,000:10=$15,000
$15,000*2=$30,000
$150,000-$30,000=$120,000
That amount would be $120,000
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