I i! https://adaptive.wileyplus.com/secure/adaptiveLearningDashboard#/practiceTe

Question

I i! https://adaptive.wileyplus.com/secure/adaptiveLearningDashboard#/practiceTest?chapld-MTV3MTc3NjYx Isidore : Home : Student Textbook AWiley PLUS × Search Availabilities m LinkedIn WleyPLUS ORION Financial Accounting, 8e Practice-Ch 9: Reporting and Analyzing Long-Lived Assets TIME SPE 00:05: Check Q9.22: Onion Company, whose fiscal year ends on December 31st, purchased a vehicle for $41,000 on March 12, 2017. The vehicle's estimated useful life is five years, and it is expected to be driven 150,000 miles (20,000 miles in the first year and 32,500 for each of the remaining four years). Onion estimates the salvage value at $3,500. Using the units-of-activity method, what amount of depreciation expense will Onion Company record in year 3? Performa Hard A $5,000 About thi B $7,500 C $8,125 D $8,883 Question D Difficult Confidence

Explanation / Answer

Hence answer is C 8125

Cost 41000 Total expected miles 150000 Salvage 3500 Miles in year 3 32500 Depreciation 8125 (41000-3500)*32500/150000

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---