On January 1,2013,a company buys a truck for $42,000 cash.It has estimated residual value of $2,000,and an estimated life of 4 years,or 200,000 miles.Assume the company uses units-of-production depreciation.The truck drove 40,000 miles in 2013,60,000 miles in 2014,80,000 miles in 2015,and 20,000 miles in 2016.What is the depreciation rate?

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Quizplus · Accepted Answer

C) Calculations: ($42,000 - 2,000)/200,000 = $0.20

On January 1,2013,a Company Buys a Truck for $42,000 Cash