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ulBle ALluuhthg X C Chegg.com s//k-state.instructure.com/courses/51070/quizzes/136014/take D Question 8 1 pts ABC purchased a new truck for $62,500. The estimated residual value is $2.500 and the estimated useful life is 3 years or 100,000 miles. If the company uses units of production depreciation, what is the depreciation expense, accumulated depreciation, and book value at the end of year assuming the truck was driven 30.000 miles in year 1? $18,000: $18,000: $44,500 $18,750: $18,750 $43,750 $18,000: $18,000; $42.000 O S20.833; S20.833; S41.667 D Question 9 1 pts ABC purchased a new piece of equipment for $62.500. The estimated residual value is $2,500 and the estimated useful life is 3 years or 100.000 miles. if the company uses double-declining balance, what is the depreciation expense, accumulated depreciation, and book value at the end of year 1? s4 1.667; $41,667; $18.333 $41667: $41.667: $20,833 $40,000, $40,000, $20,000 $40,000; $40,000, $22 500

Explanation / Answer

Q8) Depreciation rate = 62500-2500/100000 = 0.60 per mile

Depreciation expense = 30000*.60 = 18000

So answer is a) $18000;18000;44500

Q9) Straight line dep = 100/3 = 33.33%

Double decline rate = 33.33*2 = 66.66%

Depreciation expense = 62500*66.66% = 41667

so answer is b) 41667;41667;20833

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