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On January 1,2025, a corporation acquired a truck for $100,000. Residual value was estimated to...

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Accounting

On January 1,2025, a corporation acquired a truck for $100,000. Residual value was estimated to be $20,000. The truck can be driven for 120,000 miles or a useful life of four years. Actual usage of the truck was recorded as 8,000 miles for the first year and 11,000 miles for the second year. What is the book value at the end of year 2, calculated by the units - of - production method? (Round any intermediate calculations to the nearest cent, and round your final answer to the nearest dollar.)
A. $50,000
B. $84,230
C. $87,270
D. $12,730
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