Bangor Industries purchased a car for $22,000 on January 1, 20X1. The car had an estimated useful life of 80,000 kilometers and an estimated residual value of $4,000. In the second year of ownership (20X2) , the car was driven 25,000 kilometers. Using the units-of-production method, what was the amount of depreciation expense for 20X2?
A) $4,500
B) $5,000
C) $5,625
D) $6,875
Correct Answer:
Verified
Q53: Eastern Fisheries Co. purchased equipment on January
Q54: Newson's Courier Service recently purchased a new
Q55: Eastern Fisheries Co. purchased equipment on January
Q57: Eastern Fisheries Co. purchased equipment on January
Q59: A company decided to use the units-of-production
Q60: An asset being amortized with the straight-line
Q61: Fraser Ltd. has decided to change the
Q62: Under what conditions would a company most
Q63: On April 1, 20X4, Michal Company
Q74: A machine that cost $72,000 has an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents