Question: If Lee Ring (Classroom Demonstration Exercise 2) amortized his truck by the units-of-production method, calculate the first years amortization based on the following: cost, $7,000;

If Lee Ring (Classroom Demonstration Exercise 2) amortized his truck by the units-of-production method, calculate the first year’s amortization based on the following: cost, $7,000; residual value, $2,000. Estimated mileage is 50,000 kilometres. The truck was driven 7,000 kilometres in year 1.

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