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 3

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

Group of answer choices

True

False