7.

On January 1, Trash Management purchased a new garbage truck for $225,800. Trash Management estimated the trucks residual value to be $41,000, and that it could be used for 6,600 dumps. During Year 1, the truck completed 1,200 dumps.

If Trash Management uses units-of-production depreciation, how much is the book value of the truck at the end of Year 1?

Select one:

a. $37,382

b. $168,218

c. $33,600

d. $192,200

10.

How are amortization and depreciation similar?

Select one:

A. They are both applications of the matching concept.

B. Their calculations always involve allocations based on time.

C. They are both methods of adjusting the cost of an asset to its market value.

D. They are methods of recognizing the cash used in maintaining an asset.