On January 1, Year 1, Mike Moving Company paid $27,000 to purchase a truck. Mike planned to drive the truck for 50,000 miles then sell it. The truck was expected to have a $3,000 salvage value. The truck was actually driven 15,000 miles during Year 1, 10,000 miles during Year 2, 5,000 miles during Year 3, and 20,000 miles during Year 4. If Mike uses the units of production method, which of the following shows how the adjustment to recognize depreciation expense at the end of Year 3 will affect the company's financial statements?

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The Answer of On January 1, Year 1, Mike Moving Company paid $27,000 to purchase a truck. Mike planned to drive the truck for 50,000 miles then sell it. The truck was expected to have a $3,000 salvage value. The truck was actually driven 15,000 miles during Year 1, 10,000 miles during Year 2, 5,000 miles during Year 3, and 20,000 miles during Year 4. If Mike uses the units of production method, which of the following shows how the adjustment to recognize depreciation expense at the end of Year 3 will affect the company's financial statements?

On January 1, Year 1, Mike Moving Company Paid $27,000