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Hadicke Company Purchased a Delivery Truck for $50,000 on January

Question 254

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Hadicke Company purchased a delivery truck for $50,000 on January 1, 2013. The truck was assigned an estimated useful life of 100,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2013 and 22,000 miles in 2014. Compute depreciation expense using the units-of-activity method for the years 2013 and 2014.

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Depreciation expense per mile: ($50000 -...

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