Question
During the first two years, A Manufacturing Company drove the company truck 27,500 and 29,100 miles, respectively, to deliver merchandise to its customers. The Company
During the first two years, A Manufacturing Company drove the company truck 27,500 and 29,100 miles, respectively, to deliver merchandise to its customers. The Company originally purchased the truck for $795,000. The truck has an estimated life of 8 years or 300,000 miles, and an estimated residual value of $3,000. At the end of the second year, what is the total amount of depreciation expense reported on the Income Statement, the total amount of accumulated depreciation reported on the Balance Sheet, and the book value of the truck using the activity-based method?
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