A truck costs $320,000 and is expected to be driven 116,000 miles during its five-year life.Residual value is expected to be zero.If the truck is driven 29,000 miles during the first year,how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

C)Depreciation per mile = $320,000 / $116,000 = $2.76
Depreciation for the first year = $2.76 × 29,000 = $80,040

A Truck Costs $320,000 and Is Expected to Be Driven