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

Question

2 years 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] · Answer 1 · 2023-10-31T03:39:58+03:00

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] · Answer 2 · 2023-10-31T05:46:19+03:00

Serga [27]2 years ago

3 0

Answer:

$80,040

Explanation:

Please see attachment

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

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