Answer:
Depreciation expense for 2013=$7,600
Explanation:
Depreciable cost=acquisition cost-salvage value
where;
acquisition cost=$80,000
salvage value=$4,000
replacing;
depreciable cost=80,000-4,000=$76,000
The depreciation rate per unit=depreciable cost/planned number of units
where;
depreciable cost=$76,000
expected number of units=400,000 units
replacing;
depreciation rate per unit=76,000/400,000=$0.19 per unit
depreciation expense for 2013=depreciation rate per unit×actual number of units used
depreciation rate per unit=$0.19
actual number of units used=40,000 miles
replacing;
depreciation expense for 2013=(0.19×40,000)=$7,600
