Crestview Estates purchased a tractor on January 1, 2012, for $65,000. The tractor's useful life is estimated to be 30,000 miles and has a residual value of $5,000. If Crestview used the tractor 5,000 miles in 2012 and 3,000 miles in 2013, what is the balance for accumulated depreciation at the end of 2013 using the activity method?

Question

Quizplus · Accepted Answer

($65,000 - $5,000)/30,000 miles = $2 per mile x 8,000 miles = $16,000.

Crestview Estates Purchased a Tractor on January 1, 2012, for $65,000