During 2012 and 2013,Supplies,Inc.drove the truck 15,000 and 22,000 miles,respectively,to deliver merchandise to its customers.The company originally purchased the truck at the beginning of 2012 for $175,000.If the truck has an estimated life of 10 years and 300,000 miles,with an estimated residual value of $25,000,what amount of deprecation expense should Supplies,Inc.record in 2013 using the activity method?
A) $11,000.
B) $18,500.
C) $7,500.
D) $16,000.
Correct Answer:
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