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Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use it
Treadwell Co. uses the units of activity method for depreciation of its delivery vehicle. It paid $60,000 for the vehicle and expects to use it for 5 years before trading it in on a new one. The car dealer has agreed to buy it back for $5,200 if it has less than $200,400 km wich is within Treadwells expectation of km per year on the vehicle. In year 1 the truck logged 38,000 km on the odometer. In year 2 the actual mileage was 28,000 km. In year 3 the actual mileage was 55,000 km. In year 4 the actual mileage was 33,000 km and in year 5 the actual mileage is reaching 20,000 km and there are less than
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