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Schach [20]
1 year ago
11

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?

Business
2 answers:
mel-nik [20]1 year ago
8 0

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

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

Serga [27]1 year ago
3 0

Answer:

$80,040

Explanation:

Please see attachment

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ruslelena [56]

The risk management principle involved in this is decision making.

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