Assume that the depreciation expense for a truck is $0.12 per mile calculated under the units-of-production method. The truck travels a total distance of 9,000 miles in Year 1. Which of the following is the depreciation expense for Year 1?
A) $2,230
B) $1,800
C) $2,000
D) $1,080

Question

Quizplus · Accepted Answer

The depreciation expense is calculated by multiplying the per mile depreciation rate ($0.12) by the total miles traveled (9,000 miles), which equals $1,080 ($0.12 * 9,000 = $1,080).

Assume That the Depreciation Expense for a Truck Is $0