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Category > Accounting Posted 10 May 2017 My Price 3.00

Units-of-Production Method

Units-of-Production Method

A light truck is purchased on January 1 at a cost of $19,000. It is expected to serve for five years and have a salvage value of $1,000. It is expected to be used for 100,000 miles over its five-year useful life. Using the units-of-production method, calculate the depreciation expense for the first and third years of use if the truck is driven 18,000 miles in year 1 and 22,000 miles in year 3.

Depreciation Expense Year 1 $ Year 3 $

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Status NEW Posted 10 May 2017 12:05 PM My Price 3.00

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file 1494420823-1565008_1_636299080015347106_1565008.xlsx preview (94 words )
Un-----------its------------of------------Pr-----------odu-----------cti-----------on -----------Met-----------hod-----------A l-----------igh-----------t t-----------ruc-----------k i-----------s p-----------urc-----------has-----------ed -----------on -----------Jan-----------uar-----------y 1----------- at----------- a -----------cos-----------t o-----------f $-----------19,-----------000-----------. I-----------t i-----------s e-----------xpe-----------cte-----------d t-----------o s-----------erv-----------e f-----------or -----------fiv-----------e y-----------ear-----------s a-----------nd -----------hav-----------e a----------- sa-----------lva-----------ge -----------val-----------ue -----------of -----------$1,-----------000-----------. I-----------t i-----------s e-----------xpe-----------cte-----------d t-----------o b-----------e u-----------sed----------- fo-----------r -----------100-----------,00-----------0 m-----------ile-----------s o-----------ver----------- it-----------s f-----------ive------------ye-----------ar -----------use-----------ful----------- li-----------fe.----------- Us-----------ing----------- th-----------e u-----------nit-----------s-o-----------f-p-----------rod-----------uct-----------ion----------- me-----------tho-----------d, -----------cal-----------cul-----------ate----------- th-----------e d-----------epr-----------eci-----------ati-----------on -----------exp-----------ens-----------e f-----------or -----------the----------- fi-----------rst----------- an-----------d t-----------hir-----------d y-----------ear-----------s o-----------f u-----------se -----------if -----------the----------- t-----------ruc-----------k i-----------s d-----------riv-----------en -----------18,-----------000----------- mi-----------les----------- in----------- ye-----------ar -----------1 a-----------nd -----------22,-----------000----------- mi-----------les----------- in----------- ye-----------ar -----------3.D-----------epr-----------eci-----------ati-----------on
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