Kant Enterprises purchased a truck for ($ 11,000) on January 1, 1997. The truck will have an

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Kant Enterprises purchased a truck for \(\$ 11,000\) on January 1, 1997. The truck will have an estimated salvage value of \(\$ 1,000\) at the end of 5 years. If you use the units-of-activity method, the balance in accumulated depreciation at December 31, 1998, can be computed by the following formula:

(a) ( \(\$ 11,000 \div\) Total estimated activity) \(\times\) Units of activity for 1998 .

(b) ( \(\$ 10,000 \div\) Total estimated activity) \(\times\) Units of activity for 1998 .

(c) ( \(\$ 11,000 \div\) Total estimated activity) \(\times\) Units of activity for 1997 and 1998.

(d) \((\$ 10,000 \div\) Total estimated activity) \(\times\) Units of activity for 1997 and 1998.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471169192

1st Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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