Question

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?

Answer 1

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

Answer 2

Answer:

$80,040

Explanation:

Please see attachment