RET Company uses the activity (units-of-production) method to ...

[Jramos095]

RET Company uses the activity (units-of-production) method to depreciate long-term assets. The company owns a truck that cost 24,000. The truck is estimated to have a salvage value of 2,000 and a useful life of 200,000 miles.
 
  How much depreciation expense would be reported on the income statement in a year in which the truck is driven 50,000 miles?
  A) 6,500
  B) 6,000
  C) 5,500
  D) 5,000

Question 2

What is the amount of cost of merchandise sold for the year according to the LIFO method?
 a. 1,380
  b. 1,375
  c. 1,510
  d. 1,250

[k.lashomb]

Answer to Question 1

C

Answer to Question 2

c

[Jramos095]

Gracias!

[fatboyy09]

Thanks for the timely response, appreciate it