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Visonic Corporation Purchased a Delivery Truck at a Total Cost

Question 70

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Visonic Corporation purchased a delivery truck at a total cost of $65,000.The truck will be used for 5 years,during which time it is expected to be driven 100,000 miles,and then it will be sold for an estimated $7,000.During the first two years of the truck's life it was driven 16,000 miles and 21,500 miles,respectively.Calculate the depreciation expense for the first two years of the truck's life using the:
(
A)straight-line method
(b)units-of-production method
(c)double-declining balance method

Correct Answer:

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(a)straight-line method:
$65,000 - $7,00...

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