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On September 1, 2010, Faster than R&G purchased a delivery truck for $42,000. The truck has a $3,000 salvage value and a five-year (or 60,000 miles) useful life. During 2010, the company put 8,700 miles on the delivery truck; the company put 16,100 miles on the truck in 2011. (Round all answers to the nearest dollar.)
-If Faster than R&G uses the straight line method, how much depreciation expense should Faster than R&G recognize in 2010?
A) $1,950
B) $2,100
C) $2,600
D) $7,800
E) $8,400
Correct Answer:
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