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Camey Corporation purchased delivery equipment on January 1 at a cost of $300,000. The equipment is expected to have a useful life of seven years or 250,000 miles, and to have no salvage value. How much depreciation expense should be recorded during the first year using the straight-line, double-declining balance, and units-of-production methods? During the year, the equipment was used for 80,000 miles. The company's fiscal year-end is December 31. Assume that revenue for the year is $376,300 and that all expenses, other than for depreciation, total $225,492. Would the use of one depreciation method instead of another have a material effect on the income statement? Discuss.
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