During the first two years, Supplies, Inc. drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 10 years or 300,000 miles, and an estimated residual value of $25,000, what amount of depreciation expense should Supplies, Inc. record in the second year using the activity-based method?
A. $16,000.
B. $18,500.
C. $7,500.
D. $11,000.
Answer: D
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Fill in the blank(s) with the appropriate word(s).
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Indicate whether the statement is true or false
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A) negotiation and settlement B) early neutral case evaluation C) minitrial D) mediation