A delivery truck costing $125,000 has a salvage value of $15,000 and is expected to be driven 220,000 miles over its useful life of 5 years. In year 1 it was driven 48,000 miles and in year 2 it was driven 42,000 miles. Using the units of activity method, what is the depreciation expense in year 2?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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A delivery truck costing $125,000 has a salvage value of $15,000 and is
expected to be driven 220,000 miles over its useful life of 5 years. In year 1 it
was driven 48,000 miles and in year 2 it was driven 42,000 miles. Using the
units of activity method, what is the depreciation expense in year 2?
Transcribed Image Text:A delivery truck costing $125,000 has a salvage value of $15,000 and is expected to be driven 220,000 miles over its useful life of 5 years. In year 1 it was driven 48,000 miles and in year 2 it was driven 42,000 miles. Using the units of activity method, what is the depreciation expense in year 2?
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