On January 1, Year 1, Hardwick Company purchased a truck that cost $53,000. The company expected to drive the truck 200,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $3,000. If the truck is driven 30,000 miles during Year 1, what would be the amount of depreciation expense for the year?

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost - Salvage value) / Useful life in miles * Miles driven= (53,000 - 3,000) / 200,000 * 30,000= $10,000

On January 1, Year 1, Hardwick Company Purchased a Truck