On January 1,2018,Xit Company bought a new delivery truck for $30,000.Xit plans to use the truck for 4 years,during which it will be driven 50,000 miles.The truck will be worthless at the end of the 4 years.If the truck was driven 15,000 miles in 2018,Depreciation Expense using units-of-production is:

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost − Residual value)× (Actual production this period ÷ Estimated total production)
= ($30,000 − $0)× (15,000 units ÷ 50,000 units)= $9,000

On January 1,2018,Xit Company Bought a New Delivery Truck for $30,000.Xit