During the first two years,Supplies,Inc.drove the company truck 15,000 and 22,000 miles,respectively,to deliver merchandise to its customers.The company originally purchased the truck for $175,000.If the truck has an estimated life of 10 years or 300,000 miles,with an estimated residual value of $25,000,what amount of deprecation expense should Supplies,Inc.record in the second year using the activity-based method?

Question

Quizplus · Accepted Answer

The Answer of During the first two years,Supplies,Inc.drove the company truck 15,000 and 22,000 miles,respectively,to deliver merchandise to its customers.The company originally purchased the truck for $175,000.If the truck has an estimated life of 10 years or 300,000 miles,with an estimated residual value of $25,000,what amount of deprecation expense should Supplies,Inc.record in the second year using the activity-based method?

During the First Two Years,Supplies,Inc