A vehicle was purchased on 1/1/21 for $55,000, useful life of 5 years or 200,000 miles, with residual value of $5,000. Using units-of-production depreciation, the depreciation expense recorded for the first year of ownership if the company drove the vehicle 40,000 miles is $40,000.

Group of answer choices

True

False

Question 2

The Accumulated Depreciation account is categorized as a liability.

Group of answer choices

True

False