On January 1,Year 1,Woolly Company purchased a truck that cost $64,000.The truck had an expected useful life of 120,000 miles over 8 years and a $4,000 salvage value.During Year 2,Woolly drove the truck 20,000 miles.Woolly uses the units-of-production method.What is the amount of depreciation expense recognized in Year 2?
A) $8,000
B) $10,000
C) $11,000
D) $20,000
Correct Answer:
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