A truck costs $303,000 and is expected to be driven 115,000 miles during its five-year life.Residual value is expected to be zero.If the truck is driven 29,000 miles during the first year,how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

Depreciation per mile = $303,000 / $115,000 = $2.63
Depreciation for the first year = $2.63 × 29,000 = $76,270

A Truck Costs $303,000 and Is Expected to Be Driven