Author Question: RET Company uses the activity (units-of-production) method to depreciate long-term assets. The ... (Read 51 times)

Jramos095 · **on:** Jul 5, 2018

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