Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 22

Straight-Line and Units-of-Output Depreciation
Finx, Inc., purchased a truck for $40,000. The truck is expected to be driven 15,000 miles p er year over a five-year period and then sold for approximately $5,000. Determine depreciation for the first year of the truck's useful life by the straight-line and units-of-output methods if the truck is actually driven 16,000 miles. (Round depreciation per mile for the units-of-output method to the nearest whole cent.)