Kant Enterprises purchased a truck for ($ 11,000) on January 1, 2016. The truck will have an
Question:
Kant Enterprises purchased a truck for \(\$ 11,000\) on January 1, 2016. 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, 2017, can be computed by the following formula:
(a) \((\$ 11,000 \div\) Total estimated activity) \(\times\) Units of activity for 2017 .
(b) \((\$ 10,000 \div\) Total estimated activity) \(\times\) Units of activity for 2017.
(c) \((\$ 11,000 \div\) Total estimated activity) \(\times\) Units of activity for 2016 and 2017.
(d) \((\$ 10,000 \div\) Total estimated activity) \(\times\) Units of activity for 2016 and 2017.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9781119316022
8th Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt