Tasty Subs acquired a food service truck on October 1, 2024, for $120,000. The company estimates a
Question:
Tasty Subs acquired a food service truck on October 1, 2024, for $120,000. The company estimates a residual value of $40,000 and a four-year service life. It expects to drive the truck 100,000 miles. Actual mileage was 5,000 miles in 2024 and 28,000 miles in 2025.
Required:
Calculate depreciation expense using the activity-based method for 2024 and 2025, assuming a December 31 year-end.
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To calculate the depreciation expense using the activitybased method we need to determine the tota...View the full answer
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