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Production method of depreciation

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Reference no: EM13912862 

On July 1, 2009,  XYZ Company purchased a truck for $80,000. The truck had an estimated life of 7 years,
an estimated salvage value of $5,000, and was expected to be driven for a total of 125,000 miles over
its life. During 2009, the truck was driven 9,400 miles.
a. Assume the company employs the units of production method of depreciation. 
b. Calculate the amount of depreciation expense related to the truck shown in the company's 2009 income statement. Do not use decimals in your answer.

 

 

Reference no: EM13912862

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