Hardwick Company purchased a truck that cost $53,000.The company expected to drive the truck 200,000 miles over its 5-year useful life,and the truck had an estimated salvage value of $3,000.If the truck is driven 30,000 miles in the current accounting period,what would be the amount of depreciation expense for the year?

Question

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Depreciation expense = [(Cost of $53,000 -Salvage value of $3,000)÷ Estimate of 200,000 units] × Miles driven during year of 30,000 = $7,500

Hardwick Company Purchased a Truck That Cost $53,000