Dinkins Company purchased a truck that cost $46,000.The company expected to drive the truck 100,000 miles over its 5-year useful life,and the truck had an estimated salvage value of $8,000.If the truck is driven 26,000 miles in the current accounting period,what would be the amount of depreciation expense for the year?

Question

Quizplus · Accepted Answer

Depreciation expense = [(Cost of $46,000- Salvage value of $8,000)÷ Estimate of 100,000 miles] × Miles driven during year of 26,000 = $9,880

Dinkins Company Purchased a Truck That Cost $46,000