Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Our company purchases a truck on 1/1/21 and uses the units of production method of depreciation. The purchase price was $40,000 with a salvage value

Our company purchases a truck on 1/1/21 and uses the units of production method of depreciation. The purchase price was $40,000 with a salvage value of $5,000. The estimated number of miles the truck can be driven during its useful life is 350,000 miles. If the truck is driven 35,000 miles in the first year of use and 30,000 miles in the second year of use, the Book Value of the truck after two years of depreciation expense is $28,500.

Group of answer choices

True

False

Question 2

If a bank lends a plumbing company $12,000 for one month with an APR of 10%, the plumbing company would record $100 in interest revenue when the loan is repaid.

Group of answer choices

True

False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S. Warren

7th edition

1285974360, 1285183487, 9781285974361, 978-1285183480

More Books

Students also viewed these Accounting questions

Question

3. Use the childs name.

Answered: 1 week ago