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Question - Primm Industrial Contractors purchased a new truck on January 1st for $35,000. The truck is expected to have a useful life of five years with a salvage value of $4,500. It is estimated that the truck will be able to operate for 200,000 miles. In year one, Primm Industrial Contractors put 46,000 miles on the truck. What amount should be recorded in year one for depreciation expense if the units-of-production method is used?
$8,050
$6,100
$7,015
$7,000
Foam Pet Mattress Company can sell as many pet bed models A and B that it can produce, but the company has limited production capacity. It can produce two units of A or three units of B per hour and it has 4,000 production hours available.
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Research this topic in the DeVry online Library, and please include the links to where you found the information that you are discussing. Some ideas to get you started include high-tech stadiums, RFID on players, social media, and big data.
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