A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. Residual value is expected to be zero. If the truck is driven 27,000 miles during the first year, how much depreciation should the business record under the units-of-production method?

A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

sakhilemdletshesm sakhilemdletshesm · Answer 2 · 2019-11-26T17:22:33+01:00

sakhilemdletshesm sakhilemdletshesm

26-11-2019

Answer:

$80,040

Explanation:

Please see attachment

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A truck costs​ $316,000 and is expected to be driven​ 116,000 miles during its​ five-year life. Residual value is expected to be zero. If the truck is driven​ 27,000 miles during the first​ year, how much depreciation should the business record under the​ units-of-production method?

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A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. Residual value is expected to be zero. If the truck is driven 27,000 miles during the first year, how much depreciation should the business record under the units-of-production method?