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Mary buys a truck for her business for $55,000. Mary will use the truck for 5 years at which point the truck will have a
Mary buys a truck for her business for $55,000. Mary will use the truck for 5 years at which point the truck will have a salvage value of $5,000. The total expected usage of the truck is 100,000 kilometers. Mary drives the truck 20,000 kilometers in year 1 and 25,000 kilometers in year 2. If Mary is using the units of production depreciation method, what is the deprecation expense to record for the truck in year 2? Select one: Oa. $22,500 Ob. $12,500 OC. $10,000 Od. $13,750
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