On January 1, 2013, Fritz Company purchased a truck that cost $38,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During 2014, Fritz drove the truck 18,500 miles. The amount of depreciation expense recognized in 2014 assuming that Fritz uses the units of production method is:

Question

Quizplus · Accepted Answer

($38,000 - $8,000)/100,000 miles = $0.30/mile depreciation expense. 18,500 miles x $0.30/mile = $5,550 depreciation expense in 2014.

On January 1, 2013, Fritz Company Purchased a Truck That