On January 1, 2014, St. John Corp. purchased a new truck for $35,000. St. John determined that this truck would be useful for 150,000 miles at which time it would have a salvage value of $5,000. During the next three years the truck was driven for 25,000, 20,000, and 28,000 respectively. At the beginning of the fourth year (2017), St. John had to overhaul the truck's engine at a cost of $7,000. The overhaul increased the life of the truck by adding 20,000 miles of use. During the fourth year the truck was driven for 23,000 miles.
Required:
a) Calculate depreciation expense for the first three years. (2014, 2015, 2016)
b) Calculate depreciation expense for 2017.

Question

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The Answer of On January 1, 2014, St. John Corp. purchased a new truck for $35,000. St. John determined that this truck would be useful for 150,000 miles at which time it would have a salvage value of $5,000. During the next three years the truck was driven for 25,000, 20,000, and 28,000 respectively. At the beginning of the fourth year (2017), St. John had to overhaul the truck's engine at a cost of $7,000. The overhaul increased the life of the truck by adding 20,000 miles of use. During the fourth year the truck was driven for 23,000 miles.
Required:
a) Calculate depreciation expense for the first three years. (2014, 2015, 2016)
b) Calculate depreciation expense for 2017.