On January 1,Year 1,Friedman Company purchased a truck that cost $48,000.The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value.During Year 2,Friedman drove the truck 18,500 miles.Friedman uses the units-of-production method.What is depreciation expense in Year 2?

Question

Quizplus · Accepted Answer

Depreciation expense = [(Cost of $48,000 -Salvage value of $8,000)÷ Estimate of 100,000 miles] × Miles driven during year of 18,500 = $7,400

On January 1,Year 1,Friedman Company Purchased a Truck That Cost