Answer:
$0.20 per miles, $6,400, $6,540
Explanation:
The calculation of the depreciation per unit and its expense method is presented below:
= (Original cost - residual value) ÷ (estimate driven miles)
= ($33,600 - $200) ÷ (167,000 miles)
= ($33,400) ÷ (167,000 miles)
= $0.20 per miles
Now for the 2021 year, it would be
= Miles driven in 2021 year × depreciation per miles
= 32,000 miles × $0.20
= $6,400
And, in 2022, it would be
= Miles driven in 2022 year × depreciation per miles
= 32,700 miles × $0.20
= $6,540
