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Blizzard [7]
3 years ago
13

A truck costs $9,000 with a residual value of $1,000. the truck is expected to have a useful life of 40,000 miles. By assuming t

he truck is driven 10,000 miles the first year, the depreciation expense would be:
Business
1 answer:
slavikrds [6]3 years ago
7 0

Answer:

$2,000

Explanation:

Cost of truck =  $9,000

Residual value =  $1,000

Value to be depreciated =  $9,000 -  $1,000

                                        =  $8,000

if the truck has a useful life of 40,000 miles and 10,000 miles is covered in the first year,

Depreciation expense for the first year = (10000/40000) ×  $8,000

                                                 =  $2,000

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