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Cullen's Catering Owns a Delivery Van Which It Depreciates Applying

Question 106

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Cullen's Catering owns a delivery van which it depreciates applying the units-of-output method (units-of-production method).The original cost of the van was $44,000.When it was purchased in July of 2016,it was estimated that it would be driven for 125,000 miles over four years and then sold for an expected salvage value of $4,500.During 2016 the van was driven 17,230 miles.What is the depreciation expense for 2016? (Round final answer to the nearest whole dollar. )

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$5,445 ($44,000 minus $4,500 =...

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