Preston Corporation purchased a truck for $40,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $4,000 at the end of that time. During the second year, the truck was driven 27,500 miles. What would the company record as Depreciation for the second year under each of the following methods: (Show your work)
2. Production method:
a. $9,000.00
b. $9,900.00
c. $10,000.00
d. None of the above
3. Double-declining-balance method:
a. $9,000.00
b. $9,900.00
c. $10,000.00
d. None of the above