Kant Enterprises purchased a truck for ($ 11,000) on January 1, 2024. The truck will have an
Question:
Kant Enterprises purchased a truck for \(\$ 11,000\) on January 1, 2024. 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, 2025, can be computed by the following formula:
a. \((\$ 11,000 \div\) Total estimated activity) \(x\) Units of activity for 2025.
b. \((\$ 10,000 \div\) Total estimated activity) \(\times\) Units of activity for 2025.
c. \((\$ 11,000 \div\) Total estimated activity) \(x\) Units of activity for 2024 and 2025.
d. \((\$ 10,000 \div\) Total estimated activity \() \times\) Units of activity for 2024 and 2025.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell